US 10Y Yield – Wave 4 Pause Before the Final SurgeDisclaimer: This analysis is for educational purposes only and does not constitute investment advice. Please do your own research (DYOR) before making any trading decisions.
The Setup
The US 10-year yield has been consolidating after topping near 5.021%. Price action since then has formed a contracting structure that looks very much like a Wave 4 triangle .
At present, yields hover near 4.0% — a crucial pivot.
Triangle view: Wave 4 is complete, setting the stage for Wave 5 higher.
Flat view: If yields break below 4.0%, Wave 4 may stretch deeper into a flat correction, potentially testing 3.6–3.7%.
Either way, the Elliott script points to one more advance: Wave 5 up .
What Wave 5 Could Mean
If the US 10-year yield really enters Wave ⑤ up, buckle up:
Bond prices tank → inverse relation, so Treasuries bleed.
Equities feel the heat → higher yields = expensive valuations, especially for growth stocks.
Dollar flexes → global FX could see USD strength.
Borrowing costs bite → mortgages, corporate loans, government debt servicing all tighten.
In short: Wave ⑤ = a macro “stress test .”
Why India Should Care
A breakout in US yields rarely stays a US-only story. For India, it means:
FII outflows as global funds chase safer US returns
INR under pressure , increasing imported inflation risks
Indian bond yields rising , even without RBI action
Equity market stress , especially in IT and rate-sensitive sectors
Final Thoughts
The triangle scenario points to an imminent breakout above 5.0%. A deeper flat only delays it. For traders and investors, this is the chart to watch — because Wave 5 in US yields isn’t just a bond market story, it’s a global macro shockwave .
US10Y trade ideas
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Bear Flag materializing in US 1O Year Yield (US10Y)US 10 Year yield suggests markets are moving towards risk off environment.
The fundamental causes for yields to fall are complex and difficult to disentangle - geopolitics, macro reasons, uncertainty, inflation risk, recession risk etc.
This will further put pressure on Stock Markets (equities).
The current trend looks bearish for US10Y.
Trade Safe
$US10YR - Potential Double Head & Shoulders Pattern Forming FPMARKETS:US10YR - Potential double head and shoulders pattern on the Daily Chart. This could align with Trump's lower rates initiative. We are seeing some weakness coming into employment data, seems like CPI and PPI are showing progress on inflation. The smaller Head & Shoulders pattern has a measured move to around 4.23% right at the 200 SMA (yellow) and the larger Head & Shoulders pattern measured move is 3.70%. This could take several months to play out since this is a daily chart. All eyes on this Friday's PCE and Non-farm payroll first week of February. I think we will have favorable PCE numbers YoY in February and March which could help the fed take their eyes off inflation and focus on jobs numbers, allowing them to cut. The market is pricing in 1.5 cuts this year. I think we will see 3-4 cuts.
US10Y Analysis : Possibility of higher for longer
Historical Context and Key Observations :
From its peak in 1981 (~15%), the US10Y yield entered a multi-decade downtrend, consistently staying below its 20-month, 50-month, and 200-month moving averages due to disinflationary pressures and accommodative monetary policies. However, after reaching historic lows (~0.5%) in 2020 amid COVID-19-induced easing, the yield saw a sharp reversal, breaking above these key averages for the first time in over four decades, signaling a potential structural shift. Currently, the yield remains firmly above the 20M (4.19%), 50M (3.07%), and 200M (2.57%) moving averages, with their steep upward slopes highlighting the strong bullish momentum.
Technical Analysis :
The US10Y yield has shown a strong bullish reversal, breaking above the 20M, 50M, and 200M moving averages for the first time in over four decades, with the 20M forming a "golden cross" above the 50M and 200M, signaling robust momentum. The MACD is in positive territory with a rising histogram, further confirming the long-term trend reversal since 2021. Key support levels lie at the 50M (~3.07%) and 200M (~2.57%) moving averages, while resistance may emerge near the psychological 5% level, last seen consistently in 2007. Despite the parabolic rise from 2020 lows, consolidation or a pullback may occur before the uptrend resumes.
Fundamental Factors Driving Yields :
The US10Y yield has reversed its decades-long downtrend since 2020, driven by inflationary pressures from post-pandemic recovery, fiscal stimulus, and supply chain disruptions, prompting aggressive Federal Reserve rate hikes and expectations of "higher for longer" policies. Strong economic growth and resilient labor markets have reduced demand for safe-haven assets like Treasuries, while increased U.S. debt issuance and global liquidity tightening further contribute to rising yields. Currently above key moving averages (20M, 50M, and 200M), the yield signals strong bullish momentum, though near-term consolidation or pullbacks may occur before the uptrend resumes.
Conclusion :
The US10Y yield appears to be in the early stages of a structural shift from its decades-long downtrend. Key technical signals, including the break above long-term moving averages and bullish momentum in the MACD, suggest that the upward trend may continue. However, near-term consolidation is possible, especially given the sharpness of the recent rise.
Potential Scenarios:
1. Bullish Case: Sustained economic resilience, sticky inflation, or additional Fed rate hikes could push yields toward 5% or beyond.
2. Bearish Case: A dovish Fed pivot, recession risks, or flight-to-safety events could see yields retesting support at the 50M and 200M moving averages.
US10Yrs. Bond Yield parallel channel. Nifty up move confirmationUS Government 10Yrs. Bond Yield trading in parallel channel. After fake break out it come down in channel again. As per chart it may correct up to 4%,3.79% and 3.06% level soon.
It has inverse relation with index, so nifty and bank nifty may give good up move in next 2-3 months as both charts suggested also the same.
US 10 YEAR YIELD NEXT WHATUS 10 year yield now encountering 2 heavy supply zones.once it is taken out then it may target my SL HUNTING LINE at 4.68.
only if it reverses below the blue line & break the TL and atleast stays for 1/2 days it will become bearsih.
but again support zone is at 4.388.
For me it will go and touch the SL hunting line first.
lets see
#US10Y YIELD - TESTING MAOR SUPPORT - YIELD PAIN STILL LEFT?????As we can see, US 10y yield is retesting major support, which was held last time. If this holds then we are about to retest the recent highs in coming months. Major resistance 5.00. Break below 3.2 levels will start new downtrend otherwise we are heading much higher.
Fingers Crossed!!! I feel we are in for a bumpy ride ahead.
Recession Risks and Market CautionIn July 2022, we saw the yield curve (US 10-year Treasury vs the US 2-year Treasury) go negative. It’s been in that zone ever since, and now, as we approach the two-year mark, we’re on the brink of positive territory.
An inverted yield curve has a well-documented history of signalling recession. When you factor in the PMI readings dropping below 50, rising unemployment rates, and NASDAQ already in correction mode with a 10% drop from its peak, the message is clear.
So, what’s the takeaway? The indicators are pointing towards a potential recession and bear market. It’s wise to proceed with caution as these signals suggest we might be heading into choppy waters.
A bond market rally is now clearAfter rising inside a channel, the US 10-year bond yields are breaking the rising channel for wave B on the downside. This confirms the start of wave C down for bond yields. In terms of levels, it means eventually going back to maybe 3% in the US 10-year note, as wave C will break the neckline at 3.8%. So this will be a multi-month decline in bond yields, resulting in a long bond rally. We broke the rising channel at 4.45% so that is the key resistance here.
US 10 YEAR BOND TREND nowTREND - NUETRAL .because now at down and up TL juction.
PRESENT ZONE- At DEMAND ZONE 1.
FORECAST -As per ZONE once downward TL crosses and closes above At DEMAND ZONE 1 will target SUPPLY ZONE 1 at 4.643.
If not will target DEMAND ZONE 2
MY TAKE - will target 4.643 the SUPPLY ZONE 1.
But any news flow may change this scenoria.
IMPORTANCE OF US 10 YEAR BOND is once it moves up Dollar will go up.Rupee goes down along with equity markets.so always keep track on this always.
US10Ythe fall started from 15% in Oct' 1981 until 0.533% in Jul 2020 has formed a parallel channel.
Though the rise has been sharp and with very little consolidation.
However it may start consolidating from 6-8%
retracement from that may not be much, however time correction is needed as bond yield has increase too much in little time.
2024 March April started a huge crash in equity market 2024 march April started a huge recession in equity market according to bond market when 10 year bond yields and 2 year bond yields curve at base line o it men's recession this economy indicator pridict right pridition back 40 year . Look at the example the greatest tech burst crash in 2000 and subprime mortgage crash 2008 and pendmic crash 2020 . This economy indicator pridict earlier this huge crash .