13 Jan 2015
US 10-yr Treasury yield nears Oct 2014 lows
FXStreet (Mumbai) - The 10-year Treasury yield in the retreated for the third consecutive session; fast approaching the Oct 2014 low of 1.865%.
The yield currently trades 2.9 basis points lower at 1.883%, compared to the previous session’s New York closing at 1.907%. The demand for safe haven treasuries has been on the rise amid the out in Crude prices, risk aversion in the Equity markets and political turmoil in Greece. Consequently, the yields have been declining despite back-to-back strong US jobs report of November and December. The decline in yields due to safe haven demand also contradicts the interest rate hike expectations in the US.
The safe haven demand for Treasuries is likely to remain strong till the outcome of Greece elections later this month. Moreover, markets believe, a victory for anti-bailout Syriza party is likely to bring back the Euro crisis. Further decline in Crude prices shall also keep yields under pressure.
10-year yield Technical Levels
The immediate support is seen at 1.865%, under which losses could be extended to 1.836% (Feb 2013 low). Meanwhile, resistance is seen at 1.905% and 1.979%.
The yield currently trades 2.9 basis points lower at 1.883%, compared to the previous session’s New York closing at 1.907%. The demand for safe haven treasuries has been on the rise amid the out in Crude prices, risk aversion in the Equity markets and political turmoil in Greece. Consequently, the yields have been declining despite back-to-back strong US jobs report of November and December. The decline in yields due to safe haven demand also contradicts the interest rate hike expectations in the US.
The safe haven demand for Treasuries is likely to remain strong till the outcome of Greece elections later this month. Moreover, markets believe, a victory for anti-bailout Syriza party is likely to bring back the Euro crisis. Further decline in Crude prices shall also keep yields under pressure.
10-year yield Technical Levels
The immediate support is seen at 1.865%, under which losses could be extended to 1.836% (Feb 2013 low). Meanwhile, resistance is seen at 1.905% and 1.979%.