Fed Week Begins With Yields Up Against Ceiling

Ceilings, floors, pivot points, etc.  Technical levels don't predict the future, but they can provide context for trends.  In some cases, they can serve as cues for the next trend.  For instance, if a key level is broken, it can be a cue for traders continue pushing in the direction of the breakout or a cue for traders to push back in the other direction.  The bullish or bearish outcome often comes down to a key event or piece of data.  With all of that in mind, 10yr yields are once again at their 2024 ceiling of 4.32%.  Wednesday's Fed announcement (and dot plot) is likely to determine if 4.32 ends up being reinforced as a ceiling or blamed as a technical trigger for additional selling.