HALISTER1: German 10-Year Bunds Bracing for 1% in Next Yield Surge: Charts

German 10-Year Bunds Bracing for 1% in Next Yield Surge: Charts

(Bloomberg) -- Historical pattern suggests German 10-year yield may have room to rise a further 100bps if bunds are entering a cyclical bear phase which momentum studies are indicating, Bloomberg strategist Mark Cranfield writes.
  • Chart pattern for past six years suggests a typical bund sell-off may lift 10-year yield by 94-140bps;
    • If 10-year yield reaches 1.0%, it will be the first time since June 2015 and amount to an increase of 116bps from late September when current cycle began; click here for chart
  • 10-year yield is breaking above 100-DMA at 0.08% this week for first time since January with momentum studies turning higher:
    • MACD above zero and signal lines
    • Slow stochastics %K at 64
  • 10-year yield closed Thursday up 8.5bps to 0.17%
  • NOTE: Mark Cranfield is an FX strategist who writes for First Word. The observations he makes are his own and are not intended as investment advice.
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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