Yields have been pushing higher since the lows in 2016 where they have created higher lows above the rising support line (2). The rally saw yields edge a small percent above falling channel (1) a few weeks ago. Did a breakout take place? Was it a breakout or a fakeout/small throw over? Yields are now testing channel (1) as potential support at (3). Channel (1) has not come into play as a support test for the past 25-years. This is a rare test for yields, as it is testing three different support lines at the same time.
What yields do at (3), should have a big impact on bonds, commodities, and banks going forward. Keep a close eye on yields here friends because it could have a large impact on portfolio construction going forward!
The iShares Barclays 7-10 Year Trasry Bnd Fd (IEF) was unchanged in premarket trading Wednesday. Year-to-date, IEF has declined -2.47%, versus a 4.93% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Kimble Charting Solutions.