Multi-year highs for US 10Y yield

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The Federal Reserve's hawkish stance has led to a significant rise in US Treasury yields, reaching levels not seen in several years. This has, in turn, bolstered the US Dollar while putting pressure on US stock markets.

Later this week, investors will closely monitor the release of US core PCE data, seeking additional insights into the country's inflation trends.

In the short term, with the recent breakthrough above levels last observed in 2008, our primary focus remains on the upside, particularly towards the psychologically significant 5.00 mark and the 2006 peak at 5.25.

Looking further ahead, we've used the width of the downward channel as a basis for measuring potential future gains. This analysis points to a longer-term target approaching 6.00."

Penafian

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