US 10Y IRS eventually defended the weekly Ichimoku cloud and a multi-month up sloping trend line near 1.41% resulting in regain of upside momentum. Economists at Société Générale expect 10-year US Treasury bond yield to reach 1.92% on a break above 1.74%.

First support is at 1.61%

“10-year US Treasury bond yield is now probing the neckline of a large Inverse Head and Shoulders at 1.74%. The more pertinent question resurfacing with 10y UST yields in earshot of 1.70% is at what level the bond vigilantes will short-circuit the bullish price action in stocks. For now, optimism about the economy means yields and stocks can move higher in lockstep.” 

“Weekly MACD is crossing above its trigger line which points towards possibility of an upside break.” 

“A move beyond 1.74% will take the swap rate towards 1.79% and perhaps even towards the peak of 2020 at 1.92%.”

“First support is at 1.61%.”