U.S. Long Term Interest Rates at 8% ?U.S. 30 - Year Yield/Rates (TYX) could rise to 8% in 2025.
TYX completed an Elliott five - wave Impulse pattern from March 2020 to October 2023. Subsequently there was a clear Elliott wave Single Zigzag into the September 2024 bottom.
TYX could be in the early phase of Primary wave , if so it could reach 8% in 2025.
Weekly RSI is in the neutral zone at only 58.19%. Price could rise significantly before reaching the overbought zone at 70.00%.
Price has again pushed above Ichimoku cloud resistance. A decisive move above this zone implies a multi month rally.
TYY could reach 8% sometime n 2025.
TYX trade ideas
30-Year US Gov't Bond Yields since 1977Here is a long term view of long term US Gov't interest rates. Long term is defined as 30 years and is a common bond owned by pension funds and insurance companies and other long term investors with long term obligations.
I highlight the various ranges of interest rates as shown in these 4 boxes and the few moves that temporarily moved interest rates outside those boxes:
1. 1987 Stock Market Crash on collapsing USDollar, hiked capital gains taxes starting in 1988, trade wars with Germany, S&L crisis brewing from 1986 real estate tax law change, and Congressional moves to eliminate interest rate deductions on takeovers.
2. Orange County Bankruptcy
3. Great Financial Crisis "GFC" - massive deleveraging of the banking industry forcing asset prices down in a collapse.
4. Covid reaction by Gov't to shut economy down and stimulate spending and handouts to keep economy afloat
5. Current over-reaction to over-stimulation during lockdowns and supply chain issues.
Weekly Preview - the Dash to Trash - SPX OIL GOLD YeildsAll in the video, a correction is likely but I don't think we crash. Final targets are still 4600+ for this particular rally. IWM and DJT caps will likely get heavily bid into the end of the year while SPX and QQQ take a breather. OIL downtrend continues, needs to get over 80 for any kind of reversal to take place. Gold could be in a Wyckoff distribution here, I'm not sure - but RSI is telling me to be cautious and expect a pullback. Yields should go higher as the stock market corrects.
Good luck!
SPX - Bear capitulation possible next week. All in the video, I give my reasons why a push to 4630-40 makes sense before a bigger move down. Gold and SIlver looking more interesting now, Oil still near support levels but needs to get over 78 to create any start of momentum. Yields also starting to break up to the upside which may get ignored by the market for a few days.
U.S. 30 Year Yields Could Soon Reach 5%The Elliott wave count for U.S. 30 year yields/rates (TYX) indcate a potential sharp rise.
The most likely TYX Elliott wave count has it forming a third of a third wave up. This is the most dynamic Elliott wave pattern. In this case it implies TYX could reach the 5.00 area in a few weeks.
If this were to occur it could have bearish implications for U.S. stocks.
Understanding the Implications of a Shift in the 30Year TreasuryRecent observations indicate a potential shift in the 30-year treasury yield. This key economic indicator, which has been on a 40-year downtrend, is showing signs of an uptrend. This could mean that interest rates may not return to zero and could even increase over time.
Understanding Treasury Yields
The treasury yield can be thought of as the interest rate that the U.S. government pays to borrow money for 30 years. If this rate is increasing, it means the government has to pay more to borrow money. This is a significant shift, as for the past four decades, the trend has been towards lower interest rates.
Potential Economic Implications
If the interest payment per year (the money the government has to pay back for its debts) becomes more than its tax receipts (the money it gets from people paying taxes), it could lead to concerns about the government's ability to pay back its debts. This could result in a decrease in the demand for government bonds, leading to a drop in their price.
When the price of a bond goes down, the yield (or the return you get from buying the bond) goes up. This is because the government might have to promise to pay more to convince people to lend them money. This situation could lead to higher borrowing costs for the government, potentially affecting its ability to fund public services and repay its debts.
The Impact on the Economy
Higher interest rates can have a broad impact on the economy. They can make it more expensive for businesses to borrow money, potentially slowing down investment and economic growth. For individuals, higher interest rates can make loans and mortgages more expensive, which could affect consumer spending.
On the other hand, higher yields can be beneficial for certain investors. Those who own these bonds would get a higher return on their investment. However, this is generally considered a riskier investment, as the higher yield is due to concerns about the government's ability to pay back its debt.
Navigating the Future
In light of these potential outcomes, it's crucial for investors and citizens alike to stay informed and prepared. Diversifying investments, maintaining a balanced portfolio, and keeping an eye on economic indicators like the treasury yield can help navigate these uncertain times.
However, it's important to remember that economic conditions are complex and constantly changing. This analysis is based on current trends and the potential for these trends to continue or change in the future. As always, it's crucial to do your own research and consider multiple perspectives when making financial decisions.
Reverse Head and Shoulders Breakout in 30 Year Bond YieldVery clear reverse head and shoulders, a very strong chart pattern indicator for long term tops and bottoms, target is 3.6% yield on the 30 year bond. A retest of the neckline will confirm a very strong possibility of the target being reached.
On the macro side, I think yields will be forced lower over the next 1-5 years.
I'm looking to go all in on leveraged bonds if and when the the 3.6% yield is reached, or if CPI starts showing significant weakening.
US30 year yields vs US10 year yieldsSomething EPIC is brewing!
US 30 year yields bottoming vs US 10 year yields.
This tracks #gold vs US equities ratio chart quite well.
And as I've shown you before, #silver/#platinum and miners track very that very closely.
Expect turbulence, but still keep focus on the prize.