When we get these types of extended moves away from the 200-day MA in the 10-Year Treasury Yield $TNX, we historical get a period of sideways action following pic.twitter.com/MNJyI9CmgM
— Grant Hawkridge (@granthawkridge) March 29, 2021
Today’s Chart of the Day was shared on Twitter by Grant Hawkridge (@granthawkridge). It’s a chart of the US 10-year Treasury yield ETF ($TNX) over the past 12 years. The 10-year yield is extremely stretched above its 200-day moving average right now. Grant point’s out that similar instances over the past decade were followed by months of sideways price action. After a sharp move higher in recent months, it would make a lot of sense to see some pause and digestion around this former support level.