US Ten Year Rate Still on Target to Hit 3.5% - Update

By: readtheticker | Wed, Jun 18, 2014
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US Ten Year Rate Still on Target to Hit 3.5%

US interest rates are heading higher. Storm coming!

Previous Post: US Ten year rate still on target to hit 3%

Rising oil and food prices in the USA is expected to boost inflation. Add to this the foreign buying of US Treasury paper in decline does not help. In the past the FED turning off QE has seen interest rates fall due to fear of falling asset prices. They say a healthly economy does see a moderate increase in interest rates, but if interest rates are rising and the economy is not healthly (subject to the numbers you choose to read) then this is NOT good news.

Also there is the news like this that suggest higher rates are a sure thing..(via Financial Times)

Federal Reserve officials have discussed whether regulators should impose exit fees on bond funds to avert a potential run by investors, underlining concern about the vulnerability of the $10tn corporate bond market.

Below the chart shows a Richard Wyckoff CAUSE building, and if it continues to execute in this way interest rates will break above 3% very easily (thus the EFFECT)!

Maybe this is the threat to the ever advancing SP500.

NOTE: The symbol !TNX does not have any volume, so it is an assumption to apply the Wyckoff logic, but if you believe in higher rates in the future then the ETF called TBT should be considered.

TNX Weekly Chart

NOTE: readtheticker.com does allow users to load objects and text on charts, however some annotations are by a free third party image tool named Paint.net

Investing Quote...

"After years of patient study I have proven to my entire satisfaction as well as demonstrated to others that vibration explains every possible phase and condition of the market." ~ William D Gann

"Bull markets are born on pessimism, grow on scepticism, mature on optimism and die of euphoria." ~ John Templeton

 


 

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Author: readtheticker

readtheticker
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