Today's Chart of the Day was shared on Twitter by Bhagyashree (@sunsofttech). It's a chart of the US 10-year Treasury Note, since 2016. As you can see, the 10-year Note is currently testing a critical resistance level. It's also coiled into a pennant pattern over the past few weeks, which suggests a strong move in either direction is imminent. The yield on the 10-year Note is already near a record low at 1.515%. If the 10-year Note resolves higher and breaks through this resistance level, it will likely send the yield on the 10-year to fresh all-time lows. A few years ago, market participants mocked the idea that the United States would ever enter a negative interest rate environment along with countries like Japan and Germany. However, as the 10-year Note continues to trend higher, the probability of negative interest rates in the US is becoming more and more likely.
Getting The Chart Report is as Easy as 1, 2, 3!
Enter your email address, check your inbox, and then relax and absorb all the amazing charts and analysis packed into your new favorite daily newsletter!