Yields Clearly On Uptrend

by: Barry Ritholtz

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:

5 Year Bond Yield

5 yr bonds

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:

10 Year Bond Yield

10 yr bonds

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

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