📚A Textbook Reverse Head and Shoulders📖

By overtaking 4.325%, the yield on the US10Y broke out of a reverse head and shoulder pattern. However, it was unable to get above resistance at 4.55%.

What’s Next for the Benchmark Yield?

With the nuclear tariff agenda off the table, I believe the bias of U.S. Treasuries will return to a downward trajectory to reflect the anticipated slowdown caused by consumers and businesses maintaining a defensive posture as we all await clarity on the impacts associated with the trade shock.

That said, as long as unemployment behaves as it has been, it is hard to bet on a sudden breakdown back below the neckline.