Descending channel on the yield curve

I spotted a descending channel on the yield curve which it never formed before in it's entire history.. So if this one plays out then we will break out to the upside..
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Looking at the chart, this wedge formation is much larger and more pronounced than typical patterns we've seen in previous cycles. The fact that it's forming after a deep inversion period adds another layer of concern, as history shows that the steepening phase following inversions has consistently coincided with market downturns.What makes this particularly concerning is the potential energy built up in such a large wedge formation. If it breaks to the upside with force, the historical relationship suggests the market reaction could be proportional to the size and duration of the pattern - which in this case is substantial.
The chart shows previous instances where smaller reversals led to significant market stress. A breakout from this much larger pattern could potentially trigger a more dramatic response than we've seen in previous cycles.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.