US 10-year Yields to reach new year highs and hit 2.00% in early 2022 – Credit Suisse

US 10-year Bond Yields retraced sharply back higher. Economists at Credit Suisse now believe that a breakout for the US 10-year Bond Yields above 1.685/705% is getting closer, which would confirm a three-year base.

A major base looks increasingly imminent

“Medium and long-term moving averages have now posted a bearish ‘death cross’, which points to a further deterioration in the trend following setup, whilst short-term momentum is reaccelerating.” 

“We believe a breakout above major support at 1.685/705% may be imminent which would confirm a three-year basing structure, which would very likely take us above the year-to-date highs and retracement support between 1.775% and 1.82%.”

“Going into 2022, we maintain our long-held view that a move to 1.965/2.00% is likely in the first quarter, followed by retracement support at 2.16/18%.”