US Treasury yields form pattern pointing to higher rates
Updated
Updated · Reuters · May 5
US Treasury yields form pattern pointing to higher rates
3 articles · Updated · Reuters · May 5
Benchmark 10-year yields are shaping a cup-and-handle, with a March 27 peak at 4.484% and a possible move to 4.60% or higher if that level is decisively broken.
The pattern emerged after yields jumped at the start of the Iran war, then consolidated in a U-shaped pullback and partial rebound that technical analysts say could precede another rise.
The setup is not yet confirmed because the handle may still be forming; a drop below 4.35% would weaken the case for further gains in one of the US economy's key borrowing benchmarks.
As a bullish chart pattern forms, will the Iran war's stagflationary shock ultimately break the trend and send bond yields crashing down?
With Treasury yields poised to surge past 4.5%, are American homeowners about to face the highest mortgage rates of this decade?