US Interest rates

In my previous post on US 10 year yield, I was excepting interest rates will break the channel and move up to 3.25 levels.  This call went totally wrong as interest rates not only fell but made a new low of 1.65 in January 2015.

If we look at the current chart interest rates are poised to move up sharply. In the daily chart we can see an inverse head and shoulder pattern which is already broken. The target for this pattern comes at 3.25.

In the weekly chart we can see a larger inverse head and shoulder pattern forming with its neck line around 2.8% to 3.0% level. A breakout of this pattern will take interest rates to 4% level in next 1 – 2 years.

In the third chart we can see that interest rates are trading at the upper end of a downward sloping channel. If interest rate breaks above this channel the target will be around 4% or higher

The sharp up move in interest rates is not limited to US alone. Most of the developed countries are witnessing sharp up move in interest rates.

I am pasting the chart for your reference. 

Summary:-

1.       Global interest rates are on upswing.

2.       Inflation may pick up.

3.       Bond buyers will be in for a massive correction

4.       US interest rates will move around 3.25%  in one year and beyond 4% in 2 – 3 years.