Bonds

Is A Bullish Pattern Developing For U.S. Treasury Bond Yields?

Long-Term 30-Year Bond Yield Month Chart.

As you might imagine, U.S. Treasury bond yields (and interest rates) crashed following the news of the coronavirus in 2020.

But it didn’t take long for them to make a sharp U-turn and head higher.

This seems to fit with the major concern of the day: inflation, which then leads to generally higher interest rates.

Today, we take a look at the long-term monthly chart of the 30-Year U.S. Treasury bond yield to illustrate a developing concern.

Are Interest Rates About To Explode Higher?

The 30-year bond yield appears to be forming a bullish inverse head-and-shoulders pattern. Now, this pattern is far from proven. We would still need to see the rest of the right shoulder form, along with a breakout over the neckline.

If this pattern comes true, it would have major consequences for the U.S. economy, financial markets and the Federal Reserve, which is trying to keep rates low). Fed Chairman Jerome Powell certainly hopes this isn’t a bullish head-and-shoulders pattern. Stay tuned.

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