Tech Musings Interest rates

I have been very bearish on bonds and mentioned that in my previous post on 19^th December and reiterated my view on 29^th May 2013. US 10 year treasury yield has moved up sharply to 2.53% from 1.80%.

If we look at the given chart we can see that US 10 year yield is forming a large head and shoulder pattern. Actually two different head and shoulder pattern can be observed on charts. If the first pattern has to come true that US 10 year yield should spend some time consolidating at these levels and trading between  2.00 to 2.53 levels before it can finally breakout.

The third chart is a 10 year Italian yield chart. We can see that 10 year Italian government bond yield
has broken out of down trend and may move up sharply in days to come.

Similarly 10 year Spanish government bond yield has broken out of down trend and may move up
sharply in days to come.