5 & 10 Year Yields

In the last post, Eclectic lays down the challenge that Yields are not going higher, and (according to him) certainly not over 5.250% on the 10 year.

Let’s have a look see at some charts, to see if we can gander what might be possible:

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5 Year Bond Yield
5_yr_20070131

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The Yield on the 5 year has broken its downtrend, and also surpassed its October 2006 highs.

Now lets look at the 10 year:

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10 Year Bond Yield
10_yr_20070131

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Clearly in In an uptrend, making a run at the 2006 highs of 5.25%.

We could easily see the 10 year yield hitting 5.5% later this year.

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Source:
Rising Rates in Our Future
GETTING TECHNICAL
MICHAEL KAHN
Barron’s WEDNESDAY, JANUARY 31, 2007
http://online.barrons.com/article/SB117019959413292910.html               

Graphics courtesy of Barron’s

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