Historical Support Test For Rates, Inflection Point For Stocks, Bonds

Published 11/26/2018, 12:02 AM
Updated 07/09/2023, 06:31 AM
US2YT=X
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US5YT=X
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US10YT=X
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US30YT=X
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Inverted Yield Testing

This 4-pack above looks at short to long-term interest rates—for 2-year, 5-year, 10-year and 30-year Treasurys—over the past few decades with a little twist, each chart is inverted (yields are upside down).

Each chart reflects that yields are testing multi-decade support at each (1). These support lines were tested back in 2000 and 2007, where lows took place, which ended up being historical price points for bonds and stocks.

How will stocks react if support holds? How will stocks react if multi-decade support is broken to the downside? What yields do at these multi-decade support points could be another historical inflection point for bonds and stocks.

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