Interest rates continue to dominate our recent research. And rightfully so. Big swings in interest rates have ramifications for the domestic and global economy.
Whether it is falling bond yields/interest rates in China (as we highlighted last week) or rising bond yields/interest rates in the U.S. (as we highlighted this week), it is important for investors to follow the bond market.
Today, we look at elevated Germany 10-Year yields, on a long-term “monthly” basis.
As you can see, German interest rates are trading at the top of a 44-year falling channel.
This falling channel has held at resistance for more than 40 years.
For bond bulls, this would be an excellent place for yields to peak!
If not, a new bullish trend for yields would be in play.
In my humble opinion, it might be important what happens here. Stay tuned!