Our title hits the nail on the head. Finally, the 30-year U.S. Yield’s curriculum delivers a significant number of points—both up and down. Recently, the interest rate barometer pulled back on the prior bear trend since the beginning of 2011 (currently 2.96%), confirming a break in the trend on the bottom line. Accordingly, important core support is emerging at this level. On the upside, the 30-year US yield is currently testing the horizontal barriers at 3.25/3.26%. The jump above this paves the way for targeting November 2018 and June 2022, giving a higher yield of 3.47/3.49%. Beyond these hurdles, 2013/14 highs mark the next outlook target at around 4.00%. The inverse head and shoulders formation of recent years remains a strategic price driver (see chart). This not only “helps” to overcome the signal generator discussed, but also puts in perspective a calculated price target in the range of about 4.30%.
30 Year Yield US (Monthly)
Source: Refinitiv, TradeSignal²/5-Year Chart Attached
5 Year Chart 30 Year Yield USA
Source: Refinitiv, TradeSignal²
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