10-year Treasury yields are down round 3 bps to 4.097% on the day as yields are conserving decrease forward of European buying and selling. The week has been exemplified by a push and pull temper with the excessive having touched 4.192% and the low being 4.075% on Monday. As you possibly can see, we’re a lot nearer to the latter now.
US Treasury 10-year yields (%) every day chart
From the chart above, it looks like bond sellers are struggling to take issues to the subsequent degree this week. A break above the 200-day transferring common (blue line) was encouraging however there’s a lack of comply with by. And that’s bringing us again to the important thing degree now, seen at 4.102% at this time.
Maintain above and the break greater in yields will keep supported considerably. Nevertheless, break again beneath and that might see the correction to start out the yr maybe run out of steam.
What occurs right here may even have implications for broader markets, particularly the greenback. The buck has been fairly resilient as of late however can be buying and selling fairly choppily this week. If something, that could be a reflection to the push and pull temper in 10-year Treasury yields.
As such, the technical problem above for the bond market can be one which greenback merchants need to be conscious about in the interim.
