10-Year Notes – First 2.52% and then higher – much higher!

I think that 10-year notes are at a crucial point right now. In the short-term I expect the yield to fall to as low as 2.52 percent but that will help in completing a reversal pattern and open the door to much higher yields in the future. It looks like a multi-decade trend change as shown below in two charts:

The first chart shows a reversal pattern in formation since last few years.

Second chart shows a well-defined support for the yields since 1985. I believe that we are very close to break this support trendline.

Advertisement