If the ten year yield can sustain a breakout above this neckline, it would be another clue that we are heading into an inflationary environment, with higher commodity prices and higher bond yields. Inverse H&S target approaches the 5% range.

And if the Fed is announcing to the public that it’s selling off its bond holdings, why wouldn’t yields go up? During the financial crisis the Fed bought up all the garbage debt that nobody wanted to hold. So do they really think they’re going to be able to unload it at a profit?