Technical Analyst Sees Higher Interest Rates

Yamada thinks the uptrend for the 2-year Treasury yield is in place since 2013 and she has a short-term target of 1.60 percent for it. She also spoke about the 10-year yield, explaining it is going through a trading range bottoming process and is currently trading in the middle of the range. It's also trading slightly above its 200-day moving average.

If the 10-year Treasury yield can get above 2.50 percent, it will break out of the trading range and move toward 3 percent, said Yamada. She added that a break out through 3 percent would define a reversal into a new rising interest rate cycle.