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Is A 500% Rally In Yields In 30-Months Enough?

Published 11/02/2022, 12:43 PM
Updated 07/09/2023, 06:31 AM

The rise in interest rates has been meteoric, with mortgage rates reaching levels not seen in nearly two decades.

The 10-year U.S. treasury bond yield is highly watched as a leading indicator, and that yield has risen from near 0% (during height of the COVID pandemic) to well over 4% recently.

Is this historic rise in interest rates enough?

Given how sensitive the stock market has been to this rise, investors sure hope so.

10-Year Yield Monthly Chart.

Today’s chart takes a look at the 10-year treasury bond yield on a long-term monthly timeline. As you can see, rates have spiked. In fact, using the 30-month ROC (rate of change), yields are up 555% (over 5x bigger than any time in yield history).

The 10-year yield is also testing a long-term down trend channel that may serve as resistance.

So yields are overheated and testing strong resistance. Will this cool off interest rates? Have bond yields risen enough? Stay tuned.

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