Chart Talk {10.26.17}

The US Treasury 10-year bond just reached its highest levels in six months the other day, attacking resistance at around a 2.40% yield.  Interest rates are up nearly 40 basis points {4/10th's of a percent} in about six weeks.  Folks, that's a pretty substantial move in a short period of time.  The good news about higher rates is they are indicative of a growing economy.  Rates generally rise as the demand for capital expands.  The other side of the coin is that higher rates ultimately act as a drag on the economy and the yields they generate become competition for stocks.  I think we're a long ways from that right now though.  Economic rates are still historically low and I think you have to see the 10-year at something north of 3% before they become competition to stocks.

Still it's something to watch.

Back early next week.

Link:  Zero-Hedge:  "10Y Treasury Yields Just Did Something Every Bond Bear Was Waiting For"