Life is full of surprises as we never know what could happen next, and it is the true phenomenon of our existence. Last time I shared my thoughts about the U.S. 10-year yield (10Y) in September of 2018 calling for a rise to 3.33% and more. JPMorgan Chase CEO Jamie Dimon warned that time to be prepared for a 5% 10-year yield. Let’s take a look a what you thought then.
Most of you agreed with JPM’s CEO and hit the 5% option. The atmosphere then was so elevated that it was easy to believe that the rates would keep rising. Indeed, the market went higher but stopped at the 3.26% mark, and that was it. The least favored target of 3.33% appeared to be the closest call.
Last week I promised to update the outlook for the U.S. interest rate, which has a strong impact on every asset class including precious metals.
More than a year ago I shared with you my concerns about the future of gold once the “era of rising rates” would come. The 10-year U.S. Treasury note yield (10Y) was at 2.2%, and large investment banks forecasted 3% yield for the near future at that time.
Indeed, that future has come in one year the 10Y is above the 3% now, and it doesn’t look like it’s the final stop. To see what could be the next I’ll share with you two charts starting from a short-term view.
Chart 1. 10Y Weekly: 3.33% And More
Chart courtesy of tradingview.com
This chart above observes the past five years to envelop the earlier top of 3.04%, which is under a second attack as the first one this past May couldn’t peg it. The yield closed last week at the 3.07%, and this time it could finally overcome the barrier to reach the target. Continue reading "10-Year U.S. Treasury Note Yield Eyes 3.33%"→
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