As we take a closer look, we see that although 10-year yields closed last week at 1.2%, they failed to break above their horizontal resistance line at 1.22%. We are now facing two scenarios: either yields break and sustain trading above 1.22%, or they will fall to try the lower trendline of the channel they have been trading since August 2020. Suppose 10-year yields break above the 1.22% resistance line. In that case, yields might rise fast towards 1.5%. Yet, as highlighted above, the 1.5% level is a strong resistance level, giving the market some respite after the selloff in Treasuries. A strong auction of TIPS this Thursday and retail sales numbers can be catalysts for such selloff. Additionally, if yields sustain trading above 1.22% a catch-up effect can trigger bond future stops causing a fast rise to 1.5% in yield.