In a comment to my blog, Eclectic lays down the challenge that Yields are not going higher, and (according to him) certainly not over 5.250% on the 10 year.
Let's have a look see at some charts, to see if we can gander what might be possible:
The Yield on the 5 year has broken its downtrend, and also surpassed its October 2006 highs.
Now let's look at the 10 year:
Clearly in an uptrend, making a run at the 2006 highs of 5.25%.
We could easily see the 10 year yield hitting 5.5% later this year.
Rising Rates in Our Future
Barron's WEDNESDAY, JANUARY 31, 2007
Graphics courtesy of Barron's