Tuesday, June 10, 2008

Ten year treasury yields set to pop?

The ten-year tresury yield, like the indices, is knocking around an important juncture which will likely set the tone for the rest of the year. The 200-day MA has contained a higher run, but converged support of the 20-day MA and the January-March double bottom is angling to push the yield higher.

There is good technical support in the ADX and stochastics, but the MACD trigger line has flat-lined throughout May.

Given the technical picture, the future outlook favors higher yields and lower bond prices.
