(Kitco News) - Below is the monthly chart of the U.S. 30-year yield and a significant trendline has been broken. The 30-year is sometimes looked at for mortgage bond rates and this graph shows they have been on the rise for some time now and this could show that the housing market in the U.S. may be in for a shock. Normally higher rates are not an issue if the economy is booming but the fact that some nations are heading into recession territory and inflation is still running rampant could affect the number of new homes being purchased and new mortgages being issued.
Back to the chart, the red circles represent a new higher high and higher low being printed. This is the first time in a while that has happened and also the rate of change and velocity of the move should be taken into consideration. In terms of resistance, 5% looks like a very tricky area but there is a long way until that point and I am not too sure how many analysts and economists are projecting a move to that kind of level.
The 2 and 10 year have also made mammoth moves in recent times. A move across the curve seems very prominent and could send shockwaves through fund allocation. Not to mention gold.
