13 Feb 2015
US 10-yr treasuries to consolidate near 2.00% – RBS
FXStreet (Barcelona) - Dmytro Bondar, Technical Analyst at RBS, gives the technical outlook for US 10 yr treasury notes, expecting a consolidation near-2.00% before bearish pressure resumes towards 2.33%.
Key Quotes
“The market proved to have formed a base in yields, as we expected the base was formed at the area of 1.61% - 1.78%, technically being the sell region of an inverted Head and Shoulders pattern formed on the yield chart during 2011-2013. The market though hit the 2.00% support area, where it started to consolidate before extending the weakness to 2.33%.”
“For the week ahead, I believe there will be a continued consolidation in the area of 2.00%, with further bearish pressure resuming afterwards targeting 2.33%. Caveat would be a sustained break below 1.78%.”
Key Quotes
“The market proved to have formed a base in yields, as we expected the base was formed at the area of 1.61% - 1.78%, technically being the sell region of an inverted Head and Shoulders pattern formed on the yield chart during 2011-2013. The market though hit the 2.00% support area, where it started to consolidate before extending the weakness to 2.33%.”
“For the week ahead, I believe there will be a continued consolidation in the area of 2.00%, with further bearish pressure resuming afterwards targeting 2.33%. Caveat would be a sustained break below 1.78%.”