U.S. 10yr Yield Testing Key Resistance Again


We’ve heard some very different predictions for the direction of interest rates over the past few days. Just yesterday, Citigroup said that they expect the yield on the 10yr note to decline down to the 1.25% level next year…while bond guru, Jeff Gundlach, said he is looking for the yield to rise to 2.1%.

Right now the yield on the U.S. 10yr note is very close to testing a key resistance level. 1.9% was the high in both September and November, so if it can break above that level…and hold above it for more than a day or two (which it wasn’t able to do in November)…it will confirm a change in trend in long-term yields from a declining one over the past 12 months to a rising one.

If it can break (and hold) above that level, it should help the banks rally further, but should also make the utility stock quite vulnerable......To see why we think the odds are better than they were in previous months that a break above that key resistance level...and to see the charts on the 10yr yield, the KBE and XLU, please click here to subscribe to my newsletter, "The Maley Report" (TheMaleyReport.com).



Matthew J. Maley

Managing Director

Chief Market Strategist

Miller Tabak + Co., LLC

Founder, The Maley Report

TheMaleyReport.com

275 Grove St. Suite 2-400

Newton, MA 02466

617-663-5381

mmaley@millertabak.com


Although the information contained in this report (not including disclosures contained herein) has been obtained from sources we believe to be reliable, the accuracy and completeness of such information and the opinions expressed herein cannot be guaranteed. This report is for informational purposes only and under no circumstances is it to be construed as an offer to sell, or a solicitation to buy, any security. Any recommendation contained in this report may not be appropriate for all investors. Trading options is not suitable for all investors and may involve risk of loss. Additional information is available upon request or by contacting us at Miller Tabak + Co., LLC, 200 Park Ave. Suite 1700, New York, NY 10166.

Posted to The Maley Report on Dec 18, 2019 — 9:12 AM
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