Chart of the Day - Thursday, January 7th, 2021

Today’s Chart of the Day was shared on Twitter by Mark Ungewitter (@mark_ungewitter). It's a chart of the US 10-year Treasury yield. The 10-year yield broke above 1% yesterday for the first time since March. As Mark points out, the next area of resistance is around 1.40%. This level acted as support for about 8-years. As Mark notes, these key levels often act as magnets. The longer-term trend is still lower, but as long as we're above 1%, there's no reason to think yields won't test 1.40%. Keep an eye on this development as higher yields will impact every other asset class.