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Is it possible for short-term interest rates to double in a couple of months? Well they have! Going back to last week, Joe Friday shared that interest rates could rise sharply, as the 10-year yield was on support and rates have just experienced one of the sharpest 12 month rate declines in 30-years. (see post here)

The chart above looks at the past two years on the 2-year note, reflecting a solid rising channel. Yields spiked down on 10/16, touching the bottom of this rising channel and creating a large bullish wick at (1).

Over the past couple of months the 2-year yield has moved higher and today, its making an attempt to break above resistance of this channel, as rates have more than doubled in a little over 60-days. 

Bond players might want to keep a close eye on this chart and the what the 10-year yield does after hitting channel support after such a dramatic one year decline in yields!