Across the Curve, Treasuries are Ready to Bust a Move

• Posted by Greg Harmon
• on July 26th, 2013

The debate is over. It is going to happen. No it is just about timing. Well, if you take a look at the charts of US Treasury yields, they are not waiting for the Bernanke to tell them it is time to move higher. Everywhere across the curve, yields look poised to rise. Take a look.

5 Year Treasury Note Yield

The 5 Year Treasury Note Yield has been moving higher since early May. But the latest consolidation around 1.46% is technically set up to start higher again. This would give a Measured Move to 2.25%. Whoa! The key appears to be resistance at the 1.45% level. The Relative Strength Index (RSI) held at the mid line in bullish territory and is rising with a Moving Average Convergence Divergence indicator (MACD) that is starting to curl higher. The broad message is – Good Luck Bill Gross.

10 Year Treasury Note Yield

The 10 Year Treasury Note Yield looks very similar. Rising since early May and consolidating under 2.65%. But it also has support for a move higher in rates from the bullish RSI and shows the MACD just turning higher. The Measured Move higher on this duration takes it to 3.65%.

30 Year Treasury Bond Yield

The 30 Year Treasury Bond Yield rounds out the field. Consolidating under 3.70% with a Measured Move higher to 4.55%, it has support for continued upward yield action from the bullish RSI and rising MACD as well.

This resistance could hold for a while but the technicals suggest it is just a matter of time before they move up again. Not September. Sooner.

Join the Dragonfly Capital Views Premium Membership

Want to learn more about Dragonfly Capital Views?
Dragonfly Capital Views Performance Through July 2013 Expiry and sign up here

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

blog comments powered by Disqus