Some see Bond yields rising in the near future

A prominent technical analyst was interviewed on Bloomberg over the weekened and she said she saw a 'reverse head-and-shoulders' pattern forming on the chart of US Treasury bonds.

I looked today and verified the truth of that.





Looking at the yield on the 10-year Treasury bond, the line on the bottom right hand shows a possible 'neckline' for the reverse head-and-shoulders that the analyst was referring to.

Yields have dropped from 8% in the mid-90s to a low of about 2% at the height of the Financial Quake in late 2008, indicating that prices have gone up over these years and peaked at the time that yield on these bonds plumbed to their lows.

I didn't know what Marc Faber and Jim Rogers were talking about when they asserted that there was a bubble in the US Treasury market.


Now I know. And I agree.