Econintersect: The bond bear market passed another benchmark yesterday (15 August and it was reinforced as a significant event today. The 10-year Treasury yield exceeded 2.74% for the first time in 2013 Thursday, closing at 2.77% yield. Rates surged Friday (today) to 2.84%.
The move exceeded what had been a double top set during the past few weeks when the yield hit 2.73% (05 July) and 2.74% (01 August).
The decisive move above 2.8% may have established a new support level for the 10-year yield at the previous resistance of 2.74%. Any decline below that support level would bring into question the continuation of rising interest rates for the near-term. As long as that support is not broken the bond bear is still alive.
Source:
- Resource Center (U.S. Department of the Treasury)