This chart shows why yields are going even lower: Technician

Even as bond yields plumb record lows, there's still big money to be made in the market, according to Evercore ISI technical analyst Rich Ross.

Ten-year and 30-yield Treasury notes have surged as yields on both have hit all-time lows this week, thanks to continued global growth concerns, central bank stimulus and further uncertainty over the U.K.'s vote to leave the European Union.

Looking at the iShares 20+ Year Treasury ETF tracking long-term Treasury bonds, Ross said Wednesday on CNBC's Trading Nation that the chart has made a "cup-and-handle," which tends to be "a continuation pattern in the direction from which the trend has started."

This formation will lead to a breakout of the TLT, said Ross, as the downtrend in price has been reversed in recent months.

The TLT ETF dipped midday Wednesday, as the Federal Reserve released minutes of its last Federal Open Market Committee meeting, and rose slightly before closing at $142.56. This is substantially above a recent low of $132.23 it hit on June 23 preceding the British referendum.

The bond price will break out above the neckline of the shown pattern, said Ross.

Translation: Bond bulls should let this rally continue to steep.


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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

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