Treasury yields consolidating ahead of Yellen
Today Yellen will deliver her 'go big' stimulus speech in her confirmation hearing for Treasury Secretary.
I don't see it as a big risk for markets but I will be watching the bond market closely. US 10-year yields are up 3 bps to 1.11% today and continue to consolidate after the test of 1.20% last week.
This looks like a bull flag to me:
With inflation and growth expectations moving higher, it's not hard to predict a further break higher. Of course, the Fed is pushing in the other direction and it's not clear how hard they will try to push rates back down.