Yield trades to the highest level

The 10 year yield has moved to a new cycle high at 1.6868%. The yield is the highest since January 24, 2020. The run higher is ahead of the FOMC decision at 2 PM ET and the Powell presser at 2:30 PM ET. Needless to say, focus will be on comments about the run up in yields.

Yield trades to the highest level

Looking at the hourly chart, the next major target comes in at the 50% midpoint of the move down from the October 2018 high at 1.7866%.

Since near the end of January when the yield corrected to near 1% and based, the yield has moved up 690 basis points. The previous swing low was in August 2020 at around 0.5%. The low yield last week reached 1.47% before resuming the run higher this week.

The Nasdaq index moved back lower on the back of the move to new highs. It currently trades down about -157 points or 1.16% at 13314.

The Dow is still higher by 111 points. The S&P is down -16 points or -0.43%.