FX.co ★ Elliott wave analysis of the 10Y US Treasury yield on February 16, 2023

We have seen the inflation move slightly lower in the US and we know that the FED would like to see the inflation hovering at about 2%. That means the forceful hiking of the interest rates seems to be doing their job, but it's likely not enough yet and we should expect the FED to hike a couple of times more in the first half of 2023. That is at least what the market is telling us as the 10-year US Treasury yield moved above the resistance line near 3.75% and we expect the US 10Y yield to continue higher towards the next target at 4.86% and possibly even closer to 5.81 before peaking in wave 5 and setting the stage for a larger correction.

However, for now, we should stay focused towards the upside as wave 5 progresses higher towards 4.86% and maybe even higher.