11 Feb 2015
US 10-year Treasury yield struggles to rise above 2%
FXStreet (Mumbai) - The 10-year Treasury yield in the US struggled to rise above 2% as markets focus on Eurogroup’s emergency meeting to decide on Greece’s debt deal.
Risk aversion may push yields lower
The markets seem to have low expectations that any final agreement on Greece would be reached today at the Eurogroup’s emergency meeting in Brussels. This would increase the risk of Greece defaulting as no agreement would mean Greece would not get the last 1.8 billion euro loan installments.
Furthermore, the decline in Crude prices shall also weigh over the Treasury yields. The 10-year yield has slipped 1.5 basis points to 1.976% at the onset of the European session.
10-year Treasury yield Technical Levels
The immediate support is seen at 1.971 (5-DMA and 50-DMA), under which losses could be extended to 1.956 (hourly 50-SMA). Meanwhile, resistance is seen at 2.016 and 2.03 levels.
Risk aversion may push yields lower
The markets seem to have low expectations that any final agreement on Greece would be reached today at the Eurogroup’s emergency meeting in Brussels. This would increase the risk of Greece defaulting as no agreement would mean Greece would not get the last 1.8 billion euro loan installments.
Furthermore, the decline in Crude prices shall also weigh over the Treasury yields. The 10-year yield has slipped 1.5 basis points to 1.976% at the onset of the European session.
10-year Treasury yield Technical Levels
The immediate support is seen at 1.971 (5-DMA and 50-DMA), under which losses could be extended to 1.956 (hourly 50-SMA). Meanwhile, resistance is seen at 2.016 and 2.03 levels.