22 Jul 2013
Flash: Treasury benchmarks are overbought – RBS
FXstreet.com (New York) - The RBS Research Team outlines the technicals of US treasuries, analyzing the outlook intraday.
Key quotes
“Intermediate Treasuries have rallied back to bear trendlines that have been in place since early May. Meanwhile, daily momentum studies in most Treasury benchmarks are now overbought.”
Moreover, “Tactically-minded investors should be flat here while awaiting better trade location.” the team adds.
“Our overnight Treasury flows were quiet but we did see better overall buying. We had Asian real buying in 5-years and more central bank buying in 3-years. Total Treasury inter-dealer broker volume was just 68% of the 10-day average through this morning.”
Key quotes
“Intermediate Treasuries have rallied back to bear trendlines that have been in place since early May. Meanwhile, daily momentum studies in most Treasury benchmarks are now overbought.”
Moreover, “Tactically-minded investors should be flat here while awaiting better trade location.” the team adds.
“Our overnight Treasury flows were quiet but we did see better overall buying. We had Asian real buying in 5-years and more central bank buying in 3-years. Total Treasury inter-dealer broker volume was just 68% of the 10-day average through this morning.”