Chart of the Day - Friday, February 4th, 2022

Today’s Chart of the Day was shared by Matt Petrallia (@theEquilibrium). It's a chart of the US 10-year Treasury yield over the past year. The 10-year yield just broke out to a pre-pandemic high of 1.912%. It spent the last three weeks consolidating above last year's highs, but we resolved higher today. At this point, we could see it test the 2% level as early as next week. We're also seeing international yields breaking out to multi-year highs, which confirms the uptrend in US rates. This continues to be one of the more important charts to watch, as it's been driving a lot of the rotation out of Growth stocks and into Value. If yields continue higher, we'll likely see that rotation continue.