January high yield reached 1.9133%. The high yield today has extended to 1.9101%
The US 30 year yield is up by 3.7 basis points today. The high yield reached 1.9101%. That is just short of the January high yield of 1.9133%. Getting above that level would take the yield to the highest level since March 2020.
Looking at the daily chart below, the low yield from last week stalled right near the 61.8% retracement of the move down since the January 2020 high to the lows seen at the steps of the March tumble lower on the Covid outbreak.
Since August of last year, the price has chopped higher. A support trend line has done a good job over the last few months installing the falls. That trend line currently comes in at 1.740%. It would take a move below that trend line to tilt the bias more to the downside. On the topside, a topside in at 1.9867%.. A move above the 1.9133% level would have traders looking toward that level (and also the 2.0% natural resistance target.
Hopes for increase growth, increased inflation, is helping to push yields higher.
