Such a sharp rise in yields in such a short period of time is undesirable since the world is awash with debt…as noted by Nicole on yesterday’s Finance show
Marc Ostwald, Strategist at ADMISI also noted the sharp spike is overdone on today’s Finance show. However, he also makes an important point – The rise in yields is not only due to Trump Bump and the resulting rise in Fed rate hike bets, but also due to the fact that China and Gulf nations are liquidating their treasury holdings.
Coming to technicals – Monthly chart
The yield has retraced 23.6% of the drop from 2006 high to 2016 low. The Fibo level is 2.269%.
We also see a break from the .
Furthermore, the monthly 50-MA appears to have bottomed out.
To me, technicals suggest the yield has bottomed out. Agreed that the spike is overdone and technical correction is likely. However, the yield may have made a long-term bottom.