US 10-year yield: Potential inverse head and shoulders

Weekly chart – Potential inverse head and shoulders neckline seen around 2.7%. The ADX is sloping lower… which clearly indicates the recent rally 2.10% lacks strength. Nevertheless, I would remain a bond bear as long as the yield remains above 2%. 



Short duration treasury yields are on the rise

Two-year yield is up 1.6 basis points. Five-year yield is up 1 basis point. At the long end of the curve, the yields are flat lined. 10-year yield trades around 2.31%.

Let us see if the US ISM manufacturing beats estimates. If it does, the yield curve could easily steepen, lending a further helping hand to the US dollar.