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25 Feb 2015
US 10-yr yields: Yesterday’s move confirms a re-test of 1.78% - RBS
FXStreet (Barcelona) - Dmytro Bondar, Technical Analyst at RBS, gives the technical outlook and key levels for US 10-yr treasury yields, expect a re-test of 1.78% levels, and further suggesting a selling approach towards 2.30%.
Key Quotes
“The market rallied yesterday, in line with our view for another push lower in yields towards 1.78%.”
“However it does not alter the long-term view of 1.61% - 1.78% being a base and providing sell-rallies levels as the area marks the sell region of an inverted Head and Shoulders pattern formed on the yield chart during 2011- 2013.”
“Therefore, we keep the same view of being marginally constructive for the next week or two, but looking to sell against 1.78%. Caveat would be a sustained break below 1.61%”
“SUP: 128-08 127-07 126-12+”
“RES: 128-28 129-26 130-17”
“Strategy: marginally constructive to 1.78% for now, from where we like selling to 2.30% (stop 1.60%)”
Key Quotes
“The market rallied yesterday, in line with our view for another push lower in yields towards 1.78%.”
“However it does not alter the long-term view of 1.61% - 1.78% being a base and providing sell-rallies levels as the area marks the sell region of an inverted Head and Shoulders pattern formed on the yield chart during 2011- 2013.”
“Therefore, we keep the same view of being marginally constructive for the next week or two, but looking to sell against 1.78%. Caveat would be a sustained break below 1.61%”
“SUP: 128-08 127-07 126-12+”
“RES: 128-28 129-26 130-17”
“Strategy: marginally constructive to 1.78% for now, from where we like selling to 2.30% (stop 1.60%)”