While S&P 500 and NASDAQ continued to make record highs overnight, it’s the development in treasury yields that’s worth more a mention. 10-year yield hit as high as 0.716, then pared back some gains to close at 0.682, up 0.036. It’s now trading above 0.71 handle in Asian session.
Unlike what happened after June’s spike, TNX is holding on to 55 day EMA this time, suggesting some resilience there. Focus is back on 0.727 resistance. Firm break there will firstly resume the rebound from 0.504. Secondly, that will suggest that the triangle pattern form 1.266 has completed. Stronger rise would then be seen back towards June’s high at 0.957. That could give Dollar a lift for the overdue corrective rebound. The next move would very much depends on Fed Chair Jerome Powell’s Jacksonhole speech.
