Treasury Yield Curve Flattening May Hasten After Support Breaksby
Steepening trend line in two-, 10-year yield spread gives way
Charts point to support at Fibonacci convergence zone
The flattening of the U.S. yield curve may accelerate, technical patterns on the chart suggest.
The difference between two- and 10-year yields may approach 113 basis points, a Fibonacci confluence zone, after the curve broke down below the four-month steepening trend line and the 21-day moving average at 125-124 basis points.
The 100-day moving-average lurks just below at 112 basis points. Any steepening beyond 129 basis points would question the near-term flattening risks.
NOTE: Sejul Gokal is a technical strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice.