Short-Term Interest Rates Up 100% In 70 Days And Breaking Out
Chris Kimble | Dec 23, 2014 11:28PM ET
Is it possible for short-term interest rates to double in a couple of months? Well they have.
Going back to last week, Joe Friday shared that interest rates could rise sharply, as the U.S. 10-Year yield was on support and rates have just experienced one of the sharpest 12 month rate declines in 30 years. The chart above looks at the past two years on the U.S. 2-Year note, reflecting a solid rising channel. Yields spiked down on 10/16, touching the bottom of this rising channel and creating a large bullish wick at (1).
Over the past couple of months the 2-year yield has moved higher and yesterday, it made an attempt to break above resistance of this channel, as rates have more than doubled in a little over 60 days. Bond players might want to keep a close eye on this chart as well as on what the 10-year yield does after hitting channel support after such a dramatic one year decline in yields.
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