Inside The Markets: 5 Charts For Active Investors (February 22)

2.  Treasuries – Another Triangle Pattern

Notable descending triangle spotted in US treasuries – the 10 Year Treasury Yield (INDEXCBOE:TNX). The measure rule would set initial price target for a downside break of around a yield of 2%, which would still position it around the top end of the previous range.  The second chart below shows speculative futures positioning as stretched to the short side – this would tend to bias the expectation toward a drop in yields from a contrarian standpoint.

Overall technical view: Would expect yields to fall (bond to rally), but need to see a breakout.

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