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  • US 10-year yield clocks fresh 7-year high of 3.128 percent.
  • The easing US-China trade tensions may have pushed up yields.

The yield on the 10-year Treasury note rose to 3.128 percent – the highest level since July 2011 as easing US-China trade tensions seem to have pushed up the US equity futures.

The news hit the wires during the overnight trade that China has offered Trump administration a  $200 billion reduction in its annual trade surplus with the US. That seems to have put a bid under the S&P 500 futures, which currently trade 0.20 percent higher at $2,723.

The risk-on action may have pushed the treasury yields higher. Also, the uptick in the treasury yields is pretty much in line with the bull flag breakout seen in the daily chart and the long-run inverse head-and-shoulders bullish reversal seen in the weekly chart.

As of writing, the yield is trading at 3.12 percent and looks set to rally further as indicated by the bullish technical setup.