The Federal Reserve has paused its interest rate hikes and inflation data seems to be leveling off. We’ll see.
All in all, bond yields (interest rates) are pulling back and investors are hopeful that we have a soft landing.
Looking at today’s long-term “monthly” chart of the 2-year treasury bond yield, it’s important to note that short-term interest rates are nearing an important decision point.
Very similar to 2006, the 2-year yield topped at (1) with an RSI divergence. So I humbly ask: Are 2-year yields following the pattern of the 2006 top?
Could this be a double top 18-years later?
The current decline has taken 2-year yields to 61% Fibonacci support level at (2).
If the 61% Fib fails to hold, then look for a sizable decline to follow! Stay tuned!
This article was first written for See It Markets.com. To see the original post, CLICK HERE.
