Thursday, May 17, 2018

US 10 Years Treasury Yield - Breaking Upwards After 30 years

After US 10 Years Treasury Broke Above the 30 Years  Downtrend – Get Ready For A Prolong Rise In Interest Rates
The U.S. bond market is at a turning point , Treasury 10-year yield jumped to the highest since 2011, making a convincing break above 3 percent, paving the way for a more prolonged rise in U.S. borrowing cost, after release of solid U.S. retail sales data with a strong upward .The  market bets that the Federal Reserve will boost interest rates three more times in 2018. Treasuries have been under pressure from a flood of new issuance as the US budget deficits widen. And inflation expectations are hovering near the highest since 2014, after years of doubts about whether prices and wages would increase. The dollar rallied,  pushing it to its highest level this year and  for the first time in a decade. Trillions of dollars of loans around the world, especially in emerging markets, are tied to U.S. yields and the dollar. The US 10 Years Treasury broke above the 25 years downtrend channel , and to many chart follower marks  a major reversal of trend and  cash is winning back it’s appeal .

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