Germany 2 and 10-year Yields Show Signs of Breakout
Yesterday, the yields closed almost unchanged despite two consecutive higher highs. However, if the breakout with the Ichimoku baseline as a stop is sustained, the main part of the uptrend is yet to begin.
Yesterday, the yields remained almost the same at closing despite two consecutive higher highs. However, if the breakout with the Ichimoku baseline as a stop is sustained, the main part of the uptrend is yet to begin.
2-Year Schatz Yields
The 2-year yields are currently above both the Ichimoku Cloud support and baseline, providing a strong foundation. Recent consecutive higher highs following the impulse break of the downtrend on March 2, 2023, suggest a potential breakout of the symmetrical triangle.
With A stop loss at 2.73 Monthly Pivot P. The yields are expected to rise, possibly peaking at the psychological 3% mark before a pause.
A significant consolidation may occur at around 3.26%. The conservative approach for calculating the symmetrical triangle equal length extension target is 4.07%, which aligns with the Quarterly Pivot S2 at 4.02%.
10-Year Bund Yields
The breakout for 10-year Bund yields is a much better setup than the one in the 2-year yields chart. The baseline of 2.35% and the Monthly pivot P of 2.33% should act as support and stop loss for the view.
The areas to target higher yields are the equal extension target at 3.21% and the quarterly pivot R2 at 3.18%. However, there may be resistance at the Monthly pivot R2 of 2.73% and the March 6th high of 2.77%.
German 2-10 Yield Curve
Still lacks the breakout, and it provides context.
Takeaways:
Higher European Yields