U.S. T-Bills: Is 1,000% Rally In 5 Years Enough?
Chris Kimble | Nov 12, 2018 01:50PM ET
This chart looks at the yield of the 2-year note and its 5.5-year performance since 1999. The 2-year yield looks to have double bottomed in 2013 and since then it has been swiftly moving higher inside of rising channel (1). The 2-year yield is currently up over 1,100% since the lows in 2013. This rally has yields testing the top of rising channel (1) and 18-year falling resistance at (2) at the same time.
Is the 2-year yield the only interest rate testing a long-term inflection point?
The 4-pack below looks at patterns of 2, 5, 10 and 30-year yields.
This 4-pack shows that the sharp rally in yields over the past few years has each testing long-term falling resistance lines at each (1), while monthly momentum is currently hitting levels not seen in decades at each (2).
These 20- to 30-year falling resistance lines look to be creating multi-decade opportunities/inflection points in bonds, which could impact stocks.
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