US 10-year treasury yields looking to turn bearish – RBS

FXStreet (Barcelona) - William O'Donnell, Head of US Treasury Strategy at RBS, gives the technical outlook and key levels for US 2s, 5s, 10s and 30s treasuries.

Key Quotes

“2s (0.52%)- Next major support doesn't emerge until ~0.80% where we found buyers back in the spring of 2011. Resistance seen at 0.40% where we'd close a gap left behind in late October. Daily momentum is still overbought and looking ripe for a bearish turn.”

“5s (1.315%)- Next major support comes in at 1.80% and just above. Next resistance begins at ~1.30% and extends down to major resistance at 1.15%. Daily momentum is still overbought and looking ripe for a bearish turn.”

“10s (1.88%)-Next resistance comes in some congestion in and around 1.80% then the low yields of 1.64%. Next support comes in ~2.40% with major support at 2.66% after that. Daily momentum is overbought and attempting a bearish turn this morning.”

“30s (2.51%)- Bonds don't have any solid support until 3.105%, the November "lows." Next resistance around 2.40%. Daily momentum is now aiming bearishly.”

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