Global Inflation Fears Are Driving Bond Yields Higher. Make This 1 Trade Now.

Jim Wyckoff

Tue, May 19, 2026 at 10:34 AM EDT 2 min read

September U.S. T-Note (ZNU26) futures present a selling opportunity on more price weakness.

See on the daily bar chart for September U.S. Treasury note futures that prices are trending down and on Monday hit a contract low. See, too, at the bottom of the chart that the moving average convergence divergence (MACD) indicator is in a bearish posture as the blue line is below the red trigger line and both lines are trending down.

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Fundamentally, world bond yields are on the rise (lower prices) amid heightened inflation concerns, led by the global energy crunch due to the war. Inflation is the archenemy of bond market bulls.

A move in September T-Note futures prices below chart support at the contract low of 108.21.0 would become a selling opportunity. The downside price objective would be 106.00.0 or below. Technical resistance, for which to place a protective buy stop just above, is located at 110.00.0.

IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any trades and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature.

Here is what the Commodity Futures Trading Commission (CFTC) has said about futures trading (and I agree 100%):

Trading commodity futures and options is not for everyone. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS. Before you invest any money in futures or options contracts, you should consider your financial experience, goals and financial resources, and know how much you can afford to lose above and beyond your initial payment to a broker. You should understand commodity futures and options contracts and your obligations in entering into those contracts. You should understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you.

On the date of publication, Jim Wyckoff did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com