🚀 Which five growth stocks look most promising right now?Ask WarrenAI

Is A Bullish Pattern Developing For U.S. Treasury Bond Yields?

Published 10/13/2021, 04:37 PM

Long-Term 30-Year Bond Yield Month Chart.

As you might imagine, U.S. Treasury bond yields (and interest rates) crashed following the news of the coronavirus in 2020.

But it didn’t take long for them to make a sharp U-turn and head higher.

This seems to fit with the major concern of the day: inflation, which then leads to generally higher interest rates.

Today, we take a look at the long-term monthly chart of the 30-Year U.S. Treasury bond yield to illustrate a developing concern.

Are Interest Rates About To Explode Higher?

The 30-year bond yield appears to be forming a bullish inverse head-and-shoulders pattern. Now, this pattern is far from proven. We would still need to see the rest of the right shoulder form, along with a breakout over the neckline.

If this pattern comes true, it would have major consequences for the U.S. economy, financial markets and the Federal Reserve, which is trying to keep rates low). Fed Chairman Jerome Powell certainly hopes this isn’t a bullish head-and-shoulders pattern. Stay tuned.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads.

Which stock should you buy in your very next trade?

With valuations skyrocketing in 2024, many investors are uneasy putting more money into stocks. Unsure where to invest next? Get access to our proven portfolios and discover high-potential opportunities.

In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record.

With portfolios tailored for Dow stocks, S&P stocks, Tech stocks, and Mid Cap stocks, you can explore various wealth-building strategies.

Unlock ProPicks AI

Latest comments

stevie ShaeJan 13, 2022, 01:52
Deflation all thd way. Inflation is transistory within the next few 6 months we will know
Steve SiewOct 14, 2021, 01:07
Deflation all thd way. Inflation is transistory within the next few 6 months we will know
Show all comments
Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.