Bullish Reversal in 10-year Yield
Since 2010, the 10-year yield has fallen from almost 4% to under 2%. This has been a continuation of the 30+ year downtrend, which originated when 10-year treasuries yielded almost 10%! As yields have rebounded from the recent 2019 low of 1.4% (which didn't go as low as the 1.35% we saw in 2016), an inverse head-and-shoulders reversal has become increasingly visible (although not yet confirmed).
Should yields increase more than 50% to the ~3.00% target in the chart, consumer banks are an excellent way to capitalize on such a move. Online banks such as Ally Financial, and brokerage houses such as E-Trade, IBKR and Schwab are also poised to benefit significantly.
Should yields increase more than 50% to the ~3.00% target in the chart, consumer banks are an excellent way to capitalize on such a move. Online banks such as Ally Financial, and brokerage houses such as E-Trade, IBKR and Schwab are also poised to benefit significantly.
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.