— Bhagyashree (@sunsofttech) February 20, 2020
Today’s Chart of the Day was shared on Twitter by Bhagyashree (@sunsofttech). It’s a chart of the US 10-year Treasury Note, since 2016. As you can see, the 10-year Note is currently testing a critical resistance level. It’s also coiled into a pennant pattern over the past few weeks, which suggests a strong move in either direction is imminent. The yield on the 10-year Note is already near a record low at 1.515%. If the 10-year Note resolves higher and breaks through this resistance level, it will likely send the yield on the 10-year to fresh all-time lows. A few years ago, market participants mocked the idea that the United States would ever enter a negative interest rate environment along with countries like Japan and Germany. However, as the 10-year Note continues to trend higher, the probability of negative interest rates in the US is becoming more and more likely.