The top of the minor base formation is at 4.20%, a level that coincides with the declining 100-day moving average. The best that market participants can hope for is a retreat to 4.05%. A break below this level would be good for equities and REITs.
Although headlines have been around the Dow Jones Industrial Average’s new highs, signs are emerging of fatigue from a different index and different market gauges for the US. Meanwhile, Singapore equities gain relative strength.
The yield on the 10-year US treasuries was at 4.13% as at Nov 14. The chart shows a downtrend, with the 10-year treasury yield forming a minor base. It has already moved up above its 50-day moving average at 4.08%.
