Interest Rates Update 2006/02/17

In the last update on interest rates, I pointed out that the uptrend support line of the 10 year note rate (black line) had turned into a resistance line for the 30 year bond rate. The 30 year rate effectively turned south at the beginning of November after hitting this line from below. The recent downward acceleration confirms this event.



This shorter term picture shows in more details the yield inversion: the 30 year rate below the 10 year rate and the 10 year rate lower than the 5 year rate. I gave the yield inversion as a very likely event in my Christmas post.



Categories: interest rates, bond market, yield curve
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