Today’s Chart of the Day was shared on Twitter by Alfonso Depablos (@AlfCharts). It's a chart of the US 10-year Treasury yield ETF, $TNX, over the past decade. Interest rates continue to rip higher. On Monday, we discussed that the 10-year yield was testing an important long-term resistance level around 1.35%-1.45%. We broke above that level in a big way today with the 10-year yield currently at 1.52%. In a comment to The Chart Report, Alfonso said, "This was a solid resistance level, but the market has spoken, and yields are clearly resolving higher. We're now firmly above 1.40% and momentum is in a bullish regime. I think we'll likely see the 10-year yield continue higher towards that 2% level. We're starting to see the impact of higher interest rates in the equity market, with Growth stocks getting hit and Value stocks finally catching a bid. If rates continue higher, it would provide a nice tailwind to Value relative to Growth."
Chart of the Day - Thursday, February 25th, 2021
February 25, 2021
