Interest Rates- Possible they peaked yesterday!

Sharing is Caring!

by Kimble Charting

CLICK ON CHART TO ENLARGE

Above looks at 2 & 5-year yields over the past 30-years. The rally over the past couple of years has both of them testing 25-year falling resistance line (A) at each (1). While testing this long-term resistance, the insets reflect potential reversal patterns might be taking place this week.

While 25-year resistance is being tested, momentum is at levels seldom seen in the past quarter-century. In fact, rates were closer to highs than lows when momentum was this high in the past.

See also  Why Don't Billionaires Pay the Same High Tax Rates the Rest of Us Pay?

Below looks at the polar extreme in the rate world, Zero Coupon Bond ETF (ZROZ)-

CLICK ON CHART TO ENLARGE

ZROZ tested dual support and the apex of a bullish falling wedge of late at (1), as momentum was low and possibly creating higher lows. Currently, ZROZ is working on a breakout at (2), which would suggest at least a short-term high in yields/lows in bonds could be at hand.

See also  Real Negative Mortgage Rates Abound As Do House Price Bubbles (Pfandbriefe 10Y Rate Negative Too) The Case Of Germany Versus USA

Full Disclosure- Members bought ZROZ a couple of weeks ago at it appeared to be attempting a bullish falling wedge breakout.

 

 

707 views

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.