Is The U.S. Dollar Bearishness - Bullish For Silver?

January 6, 2014

New York (Jan 6)   Last week the 10-Year Treasury Note futures contract closed at 3.01%, and closing above the 3% level for the first trading week of the year. A major milestone for short-term rates. The weekly chart below clearly shows a major bottom has taken place from the lows of 1.43% yield made back in July 23, of 2012. After a successful test of the 200 MA of 2.51% yield on October 21, 2013, the yield has risen to the highs made the last week of 2013 at the 3.04% level. With the yield trading above the 50 and 200 MA, it supports the uptrend to challenge the previous highs of 3.50 to the 4% levels made in 2011. This is a major shift to higher interest rates for the short end of the yield curve in a relatively short period of time and could have serious repercussions for the U.S. dollar, the global economy and precious metals.

Moreover, the following chart clearly demonstrates that the T-Bonds are going to hell in a hand basket as interest soar.$USB&p=W&yr=4&mn=6&dy=0&id=p78183895358&a=329176937&listNum=2  


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