The 10 year US treasury yield has been in a negative trend channel since June, but recent developments suggest that this may be changing. In the latest trading session, the yield broke above the channel for the first time in ages, signaling a potential shift in the market’s sentiment.

The 50 day moving average also provided support, as the treasury yield traded above it for the first time since the beginning of the year. This is a significant development, as it suggests that investors are becoming more optimistic about the economic outlook.

There are several factors that could be contributing to this shift in sentiment. The ongoing global pandemic has had a profound impact on the economy, but recent vaccination efforts and government stimulus packages have helped to stabilize the situation. Additionally, the Federal Reserve’s accommodative monetary policy has provided a boost to the markets, as lower interest rates make borrowing cheaper and investing more attractive.

However, it is important to note that this development is not without its risks. The yield on the 10 year treasury is still relatively low compared to historical levels, which could indicate that investors are not yet fully confident in the economic recovery. Additionally, there are concerns about inflation and the potential for interest rates to rise in the future, which could impact the value of long-term bonds.

While the recent break above the negative trend channel on the 10 year US treasury yield is a positive development, it is important to approach with caution. The economic recovery is still in its early stages, and there are potential risks that could impact the markets in the future. As always, it is important to stay informed and up-to-date on market developments and economic trends.