The bonds complex may be setting up for a near-term reversal of sorts. The charts below show the potential for a near-term low in yields and possible ensuing move higher.
Let’s look at German Bunds and US Treasuries.
GERMAN BUND YIELDS
I suspect that the combination of both TD buy setups occurring within the next couple days and this long-term trendlne should be important in stemming this yield decline… and helping yields turn back higher.
.27-.28 looks important as a yield area where one could sell Bunds.
German Bund Yields (monthly chart)- Â German Bund yields successfully broke out above trend from 2011 but yet well below the downtrend from 08 which hits up near 1%
I EXPECT a push higher up to at least .70-.75%.
US TREASURY YIELDS
Yields are getting down to support. Â 2.32-2.34% stands out as an area where the 10-year yield should bottom out. I’m expecting yields to move back higher shortly.
UNDER 2.303 would change this view on a weekly close (and would be bullish for bonds).
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Twitter: Â @MarkNewtonCMT
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