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 .
All posts and charts are for educational and illustration purposes only
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