U.S. Real Yields Signaling Weakness May Deal Dollar Another Blow

U.S. real yields may be headed lower after decisively completing a technical chart pattern, potentially dealing another blow to the dollar after the Federal Reserve’s meeting minutes showed members were concerned about currency appreciation.

Inflation-adjusted yields on 10-year bonds in the U.S. have broken below a wedge pattern that had capped its range for almost a month. Any downtrend could spur the yen, which has a negative correlation of 0.94 with real yields.