The 10-year Treasury yield recently failed at the critical resistance level of 4.38%, previously highlighted as a significant pivot. On the daily chart, the yield formation now resembles a potential head-and-shoulders reversal pattern, which would have profound implications if completed.
Immediate Supports: Crucial Support lies at 4.30, followed closely by 4.22 and 4.16. A breakdown through these levels would solidify a bearish reversal, targeting declines to the psychological levels at 4.00% and potentially down to 3.90%.
Yield Consequences: A substantial yield decline typically signals mounting recession fears, negatively affecting investor confidence, driving volatility (VIX) higher, and accelerating equity market losses.
Immediate Supports: Crucial Support lies at 4.30, followed closely by 4.22 and 4.16. A breakdown through these levels would solidify a bearish reversal, targeting declines to the psychological levels at 4.00% and potentially down to 3.90%.
Yield Consequences: A substantial yield decline typically signals mounting recession fears, negatively affecting investor confidence, driving volatility (VIX) higher, and accelerating equity market losses.
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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.