These charts offer a warning to the next generation — a new era of higher Treasury yields may be coming

Treasury yields have spent decades in a structural decline, with the 10-year rate falling from mid-teens in the early 1980s to pandemic-era lows near 0.5%. This technical analysis suggests that multi-decade trend may be reversing. A pennant formation—characterized by converging trendlines following a sharp move—typically signals continuation in the direction of the prior trend, which in this case points upward. For younger investors who've only known falling rates, this shift would reshape everything from equity valuations to bond portfolio returns. Higher yields increase government borrowing costs, pressure corporate earnings through elevated capital expenses, and make fixed-income alternatives more attractive relative to stocks. Even the alternative scenario mentioned appears unfavorable, likely referencing the possibility that yields remain range-bound only because economic growth disappoints. Either outcome—structurally higher rates or stagnation—presents challenges for asset allocation strategies built on four decades of declining borrowing costs.