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Interest Rates Eye 25-Year Resistance

Published 03/14/2018, 01:34 PM
Updated 07/09/2023, 06:31 AM
US10YT=X
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US30YT=X
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BKX
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10- And 30-Year Yields Testing Resistance

This 2-pack looks at 10-year and 30-year yields over the past 30 years. Both have remained inside of falling channel (A) during the last 25 years. The interest-rate rally over the past two years has both of them testing 25-year falling resistance at each (1).

A close-up view of each reflects that both hit channel resistance and are now attempting to “roll over” at each (2).

Lower yields might not be a good sign for stocks and the banking index. Below looks at the bank index on a long- and short-term time frame.

KBW Bank Index

Keep a close eye on what banks do in the next couple of weeks. We could run into trouble if “Double Tops” are created over different time frames.

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