US 10-year treasury yield hits 4-year high, eyes break above 3 percent

US 10-year treasury yield rises to 2.98 percent in Asia.
Could rise above 3 percent, the technical chart indicates.

Omkar Godbole FXStreet Contributor

The yield on the benchmark US 10-year treasury yield is trading at 2.98 percent in Asia - up two basis points and highest since March 2014.

The daily chart shows a bull flag breakout - a bullish continuation pattern, meaning the rally from the June 2017 low of 2.314 percent has resumed. So, yield could go as high as 3.56 percent. (Target as per the measured height method).

The bullish pattern adds credence to the long-term bullish reversal (bearish reversal in bond prices) as indicated by the inverse head-and-shoulders breakout seen on the weekly chart.

So, a move above 3 percent looks like a done deal and could help USD gain ground across the board.

Daily chart

Weekly chart

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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