5 Mar 2015
US 10-year Treasury yields marginally constructive to 1.78% – RBS
FXStreet (Barcelona) - Dmytro Bondar, Technical Analyst at RBS, gives the technical outlook for US 10-year treasuries, noting that with the yields failing to sustain above 2.00%, the target for a move towards 1.78% remains constructive.
Key Quotes
“The move back to the trendline area, failed to sustain below 2.00% on the first attempt. This does not change technical picture at all, as both yield and price charts suggest the current levels are near key price support and yield still being below the trendline.”
“Unless the price breaks below 126.13 or yield gets above the trendline (near 2.15%), I believe the next move will be 1.78%, which we would see as long-term selling area. This is due to the 1.61% - 1.78% region being a sell region of an inverted Head and Shoulders pattern formed on the yield chart during 2011-2013.”
Key Quotes
“The move back to the trendline area, failed to sustain below 2.00% on the first attempt. This does not change technical picture at all, as both yield and price charts suggest the current levels are near key price support and yield still being below the trendline.”
“Unless the price breaks below 126.13 or yield gets above the trendline (near 2.15%), I believe the next move will be 1.78%, which we would see as long-term selling area. This is due to the 1.61% - 1.78% region being a sell region of an inverted Head and Shoulders pattern formed on the yield chart during 2011-2013.”