In the Chart Of The Day today I mentioned some concerns vis a vis Germany/Europe as well as some signs of EURO weakness developing again (Against the other low yielders of JPY and CHF in particular)
To add to that concern the chart below shows the German 2-year yield potentially on the cusp of another break lower.
The recent bounce on this yield stopped perfectly at the 76.4% retracement of the Sept-Dec 2023 fall of 3.124% (The high was 3.127%) before falling away sharply.
It now looks to be forming a head and shoulders top with a neckline at 2.70% and a potential target below 2.30%
If seen that would take it below the pivot of the 76.4% bounce at 2.355% which would be viewed as an acceleration point and suggest a re-test of the March 2023 low at 2.10%
A break below there, if seen, would complete a clear double top formation with a target as low as below 1% with the 200-week MA standing at 1.15%
All this as we are also seeing bull steepening in the German 2's10's chart does not augur well and looks likely to test Christine's "patient approach"
The double bottom and inverted head and shoulders patterns here suggest a potential from +10 to +40 bp's