Chartbook: Chart GER 10 Year Yield: Yields to remain under pressure into the coming weeks

The anticipated break higher in yields has posted a fresh 15-year high at 3.200%,

where fresh selling pressure has emerged, triggering a choppy retracement back below 3.000% towards 2.900%.

Weekly stochastics are falling and the weekly Tension Indicator is also bearish,

highlighting room for further selling pressure into the coming weeks.

A break below 2.900% will add weight to sentiment and open up a test of support at the 2.700% Fibonacci retracement.

However, already oversold weekly stochastics could limit any initial tests in fresh consolidation, before deteriorating monthly charts prompt further losses.

A further break below 2.700% will open up multi-month congestion support within the 2.500% - 2.600% range, and the 2.545% retracement.

Meanwhile, resistance is at congestion around 3.000% and extends to 3.200%.

A close above here is needed, not yet seen, to confirm 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 congestion around 3.500%.

However, by-then overbought monthly stochastics could limit any initial tests in fresh consolidation.