Investors hunting for yield could soon find some breathing room in bonds, as one technician says that Treasury rates could be set to rise.
Bond yields have been on a general downtrend for decades, leaving traders strapped in their search for high-yielding investments. But Rich Ross, technician of Evercore ISI, sees change on the way.
On his short-term chart of the 10-year Treasury note yield, Ross points out there has recently been a breakout from a consolidation pattern formed during the summer. Ross' chart also shows the recent breakout hovering close to the 150-day moving average, which shows the potential for even more upside in bond yields.
"I think there's a case for some short-term upside here, and when we look at the weekly chart, at least, we see the potential for a double bottom at an all-time low," Ross said Monday on CNBC's "Trading Nation."
There, on the weekly chart of the 10-year Treasury bond yield, Ross points out that history may be about to repeat itself. When bond yields hit their lows in July 2012, they began a rally that continued until mid-2013. With bond yields hitting a four-year low in July of this year, Ross sees the exact same pattern happening, predicting that they're going to continue upward just as they did in 2012.
But not everyone sees a breakout for bond yields. Max Wolff, chief economist at Manhattan Venture Partners, believes that while rates would rise on the back of the long-anticipated Fed rate hike, the state of the economy would actually end up pushing them back down.
"We're going to have a little more money go to safety, and that's going to push those rates back down," Wolff said Monday.
The 10-year yield hit the highest level in nearly 12 weeks on Tuesday morning.