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24 Feb 2015
US 10-yr treasuries marginally constructive to 1.78% - RBS
FXStreet (Barcelona) - Dmytro Bondar, Technical Analyst at RBS, views that the next move for US-10yr treasuries is lower yields, but 1.78% level is expected to see a floor.
Key Quotes
“The price action so far formed a local base at 127-00/07, as the weekly yield chart indicated a potential bullish inside session, confirming our view for another push lower in yields towards 1.78%.”
“However it does not change the long-term view of 1.61% - 1.78% being a base and providing sell-rallies levels as the area marks the sell region of an inverted Head and Shoulders pattern formed on the yield chart during 2011- 2013.”
“Therefore, we keep the same view of being marginally constructive for the next week or two, but looking to sell against 1.78%.”
“Caveat would be a sustained break below 1.61%.”
Key Quotes
“The price action so far formed a local base at 127-00/07, as the weekly yield chart indicated a potential bullish inside session, confirming our view for another push lower in yields towards 1.78%.”
“However it does not change the long-term view of 1.61% - 1.78% being a base and providing sell-rallies levels as the area marks the sell region of an inverted Head and Shoulders pattern formed on the yield chart during 2011- 2013.”
“Therefore, we keep the same view of being marginally constructive for the next week or two, but looking to sell against 1.78%.”
“Caveat would be a sustained break below 1.61%.”