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Interest rates continue to dominate our recent research. And rightfully so. Big swings in interest rates have ramifications for the domestic and global economy.

Whether it is falling bond yields / interest rates in China (as we highlighted last week) or rising bond yields / interest rates in the U.S. (as we highlighted this week), it is important for investors to follow the bond market.

Today, we look at elevated German government bond yields (on a long-term “monthly” basis).

As you can see, German interest rates are trading at the top of a 44-year falling channel.

This falling channel has held at resistance for more than 40-years.

For bond bulls, this would be an excellent place for yields to peak! 

If not, a new bullish trend for yields would be in play.

In my humble opinion, it might be important what happens here. 

(Click on image to enlarge)

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