US 10-year yield targets 1.28 in the longer run – Commerzbank

Yields of the key US 10-year benchmark are seen climbing to the 1.28 area in the medium-to-longer term, in opinion of Commerzbank’s Karen Jones, Team Head FICC Technical Analysis Research and Axel Rudolph, Senior FICC Technical Analyst.

Key Quotes

“The US 10Y yield is heading back up towards the June and November highs at 0.96/0.98 which are expected to be exceeded with the psychological 1.00 mark expected to be reached as well.”

“The next medium-to-longer-term technical upside target is the 1.28 mid-March high.”

“Another one sits at the 1.32/38 2012 and 2016 lows and also at the 1.42 2019 low.”

“mmediate upside pressure should be maintained while the yield remains above the 0.81/0.79 August and early October highs and November 20 low.”

“Our medium-term bullish view will remain intact while the yield stays above the July high, mid-October and November lows at 0.72/0.69.”

“Above these the 200- and 55-day moving averages can be spotted at 0.79/0.74 and also the five month support line at 0.77.”