Selloff Wave in Global Bond Markets: US Treasury Yield Hits 19-Year Peak

The global bond sell-off and the rise in US Treasury yields to a 19-year peak could put pressure on equity valuations. The high interest rate environment is particularly negative for technology stocks. However, GOOGL's 3.8% gain in the last 24 hours and the RSI at 55 in neutral territory do not signal oversold conditions in the short term. The MACD being slightly above its signal line indicates that positive momentum is weakening. Therefore, I assess that downside risk has increased in the 1-3 day horizon, but additional confirmation is needed for a definitive downtrend.

The rise in US Treasury yields to a 19-year peak, coupled with a global bond selloff, is a supportive factor for the DXY. Rising yields typically strengthen the dollar as they make returns more attractive to foreign investors. Technical indicators also support this view: RSI at 56 is neutral-positive, and the price is above the SMA20 and SMA50. However, MACD is below the signal line and momentum is weak, so the upside may be limited. In the short term, I expect a moderate upward movement in the dollar index.