Yields have peaked at 2.93, just shy of the 3% target I’ve
mentioned before. My central scenario is one of yields moving sideways between
2.4% and 3% in the coming months.
A break of the 3% level would point to a continuation to 4%.
Analysis
1)
Yields are tracing a potential evening star (see
red rectangle), with the central candle being a shooting star.
2)
On top of this we are very close to the upper
boundary of the channel that has contained the move since 2009
3)
We are bps from the 100%projection of the head
and shoulder bottom
