US 10-year yield gaps up today and it’s trading up 0.068 at 2.383 at the time of writing. An immediate focus is 100% projection of 1.343 to 2.065 from 1.682 at 2.404. Sustained break there would be an important sign of upside acceleration. But in any case, break of 2.135 support is needed to signal short term topping, or outlook will stay bullish.
At the same time, we’d like to point out that TNX would be facing a key multi-decade channel resistance ahead. The channel resistance is at around 2.65. Sustained break there will carry rather significant long term bullish implication, which could be a signal of trend reversal.