Fed scenarios and interest rate rhetoric abound but there’s one story teller that will not lie… the chart.
Interest rates, as reflected by the ten-year yield ($TNX), are back testing resistance at 1.907 – 1.974. Any move above this zone of resistance, where rates have currently paused, will open the door for further upside. This would mean higher rates dead ahead.
On any move above 1.974, the next upside target / resistance zone in the ten-year yield is at 2.206 – 2.292.
The lows in ten-year rates earlier this year held the key zone of support that was established several years back at 1.564 – 1.651. This key zone of support remains intact with higher support established at 1.749 on any pullback.