I was curious what patterns I could find on the US10Y log chart and I found this massive 40 year long parallel channel.
As you can see, yields stayed inside the channel for 40 yrs, but it dropped below every time there was a financial crisis or issue.
Yields have always re-entered the channel. Maybe I am not experienced with yields enough, but I have a hard time believing the FED can fix this issue without expanding their asset purchases to astronomical amounts.
Focusing on price action, it looks like rates are going up in a parabolic fashion, trying to revert to the mean. MACD is also flipping bullish on the monthly.
Just my opinion, good luck.
As you can see, yields stayed inside the channel for 40 yrs, but it dropped below every time there was a financial crisis or issue.
Yields have always re-entered the channel. Maybe I am not experienced with yields enough, but I have a hard time believing the FED can fix this issue without expanding their asset purchases to astronomical amounts.
Focusing on price action, it looks like rates are going up in a parabolic fashion, trying to revert to the mean. MACD is also flipping bullish on the monthly.
Just my opinion, good luck.
Note
Looks like rates are being kept down for now.Note
See new idea.
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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.