It appears that 10's are coiling up with two potential trendlines to watch (converging orange lines on the chart). Since failing just under 1.70 three weeks ago the latest trend has been down despite a more hawkish Fed and rising 2-year yields. This has led to dramatic flattening across the curve before the latest FOMC meeting. Ahead of Wednesday's announcement, US breakeven rates had fallen to 2 month lows, suggesting since the final stimulus plan was signed in late November that expectations for future inflation could finally be in the process of being addressed. Even after the Fed's meeting, breakevens still seemingly believe that Powell & company are about to embark on a tightening cycle next year with 3 hikes being currently priced by the market for 2022. Although, breakevens still look to go lower, the latest price-action suggests they could be on the verge of starting to stabilize. And 10's too may be attempting to bottom-out as well. For that to happen, however, 10's have to hold the 1.39/1.40 area before turning attention towards the downward sloping trendline ahead of the 20-day moving average. Moreover, with the latest stabilization in the persistent curve flattening trend could also be suggesting more stable rates at the long end of the curve. The one factor to watch that could delay a possible move-up in US yields is covid pandemic, which has unleashed severe year-end profit-taking in the highest performing stocks and overall burdened equity markets around the world.