Chartbook: US Chart 10 Year Yield: Yields to continue rising in the coming months

The anticipated pullback in yields was not seen, as the anticipated break below 4.000% found support at 4.361% and posted a steady bounce.

Gains from the 3.926% current year low of 2 March have reached 5.000%. However, overbought weekly stochastics are flattening, suggesting room for a minor pullback into the coming weeks.

Support is at range highs around 4.750%, and should underpin any immediate setbacks. A close beneath here would turn sentiment neutral and give way to range extension in congestion above 4.600%, as monthly stochastics and the monthly Tension Indicator.

Following any corrective pullback, yields are expected to rise once again, as the break away from the multi-month pennant helps to improve sentiment.

Resistance is at congestion around 5.000% and extends to the 5.021% multi-year high of October 2023. Multi-month studies are also showing signs of improvement, pointing to room for higher yields. But a close above here is needed to confirm a period of multi-month rising yields, as gains from the March 2020 low at 0.333% resume.