Why Are Yields on U.S. Treasuries Rising All of a Sudden?
From Profit Confidential
January 29, 2013 - 1:55am
Could U.S. debt be reaching a breaking point?
In the chart below of the U.S. 10-year Treasury, it looks like yields on U.S. bonds have bottomed out and are rising again.
As the chart below shows, in June of 2012, the U.S. 10-year Treasury note traded close to $135.00. Now 10-year Treasury prices have broken below $131.00—a decline of almost three percent.
As the prices for 10-year U.S. Treasuries declined, an interesting event took place on the chart. The 200-day moving average of the price of the U.S. 10-year Treasury note moved above its 50-day moving average—a bearish signal according to technical analysis. The last time this bearish crossover took place for the U.S. 10-year Treasury was at the beginning of 2011.
Chart courtesy of www.StockCharts.com
Yields have fallen off a cliff for the U.S. 10-year Treasury. In mid-June 2007, 10-Year Treasury notes were yielding about five p...Continue reading this article »