TYX 30-Year Treasury Bond Yield Weekly Chart Channel

The positive divergence in late December causes the bond yield to bounce upwards and the upward move accelerated last week. The green lines show a long and strong profile so another higher high in yield is desired moving forward, but a pull back will likely occur first. Before anyone calls the top in the bond market, which will be a bubble top when it occurs, the blue channel shows price comfortably moving thru the 2.8-3.7% range.

The 30-year bond yield moving above 3.7% will signal a sea change in the bond market, for now, the projection is more sideways ahead. We will know more when the next higher high occurs in the days and weeks ahead. Chances are, that next high in yield will occur with negative divergence in the indicators which will serve to keep yields in the blue channel moving forward thru 2012. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your financial advisor before making any investment decision.