Chart of the Day - Friday, December 22, 2023

Today’s Chart of the Day was shared by Ian McMillan (@the_chart_life). Yields will likely end flat on the year despite hitting levels not seen since 2007 at one point. After reaching a 16-year high of 5% in October, Ian points out that the 30-year Treasury Yield is retesting the breakout level at 4%. This former resistance level (4%) could act as support in the near term, as it coincides with the uptrend line off the Dec.'22 lows. Stocks could experience some turbulence if yields rebound here. On the other hand, a breakdown would be very positive for risk assets, as it would signal further downside for rates in the new year.