Head-and-Shoulders to Lift U.S. 5-Year Yield: Technical Analysis

The yield on the U.S. five-year note may be setting up to rise to a more than four-month high as it completes a complex reverse head-and-shoulders pattern, Bank of America Merrill Lynch said, citing technical analysis.

A break in the yield above 93 basis points, or 0.93 percentage point, would confirm the pattern and indicate the yield may rise to as much as 1.22 percent, matching highs last seen in October, MacNeil Curry, head of foreign-exchange and interest-rates technical strategy at the Bank of America Corp. unit in New York, said in a telephone interview. The initial target in the move is 1.02 percent, last touched in December, before moving higher.