The chart I’m watching closest now is that of the 10-year treasury not yield. We are a finance-based society and any meaningful uptick in rates could be detrimental to our already fragile economy.
As the chart above shows, the ending diagonal formed over the past couple of years was broken last week. The head and shoulders pattern I recently highlighted has also played out as expected:
We’re still a long way from the top of this channel but, as I’ve said before, even a move this small could be considered a crash in the value of long bonds.
