Value of the value of a bond, part 5

We've been looking at how much silver the government would have to give you every year for lending it $100 (for ten years). Remarkably, just a decade ago, the government gave you a silver eagle's worth of interest every year for your $100 loan. Now, all they'll give you is the paper equivalent of 1/20th oz., or about half the melt value of an old dime (i.e. circulating dimes when money was money).

For almost 10 years, the value of the 10-yr yield in silver traveled down a narrow channel in what could very well be a managed descent. Then, in 2010, the descent became even steeper (see purple channel). Back in May, I guessed that we'd go back to the top of the purple channel, which we did, and then we went back to the lower trend line, where we are now, after overshooting for a few days. The UST10Y looks to be in a descending wedge (orange lines in lower chart), which signals a steep fall, but how much lower could it go? Anyway, it will probably make its way towards the upper orange line first. But if it doesn't, and since the silver chart looks bullish, perhaps we are entering an even steeper phase of yield worthlessness, which might begin after the thin blue line proves to be resistance. Stay tuned.