Chartbook: Chart GER 10 Year Yield: Room for higher Yields in the coming weeks/months

Choppy trade around 3.000% has given way to fresh gains, with yields posting a fresh year high around 3.572% before settling into consolidation around 3.500%.

Monthly stochastics and the monthly Tension Indicator has turned higher once again, highlighting room for still higher yields in the coming weeks/months.

A close above 3.000% will help to improve price action and signal a multi-month period of rising yields, as yields resume the correction of the 1981 bear trend.

Gains from the March 2020 year low of -0.908% will then focus on the 3.805% Fibonacci retracement, with room for continuation towards congestion around 4.000%. However, already overbought monthly stochastics could limit any initial tests in fresh consolidation, before improving longer-term charts prompt a further break.

Meanwhile, support is down to the 3.200% monthly high of 19 May.

A break beneath here, if seen, would turn price action neutral and give way to consolidation above congestion around 3.000%.

However, an unexpected close below the 2.835% monthly low of 26 June would turn sentiment negative and confirm a deeper retracement and lower yields.