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22 Apr 2015
US 10yr treasuries momentum trying to lean bearish – RBS
FXStreet (Barcelona) - William O'Donnell, Head of US Treasury Strategy at RBS, comments on the treasury market and further shares the outlook and key technical levels for US treasuries.
Key Quotes
“Treasuries have seen a modest bull flattening overnight even after Greece's Varoufakis cited progress in talks. EU peripheral spreads are tighter on solid buying in 5yrs on out.”
“Our overnight US rates flows saw nothing of consequence in cash and some Yen-based activity in the front end of the swaps curve. There was a block buyer of 30k in EDZ6 a bit ago. Overnight inter-dealer Treasury volume was 108% of the 10-day average.”
“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 now bearish with evidence of Bearish Divergence too...”
“5s (1.33%)- Next support sits at 1.46% and then stronger support comes in at 1.70% and just above. Next resistance begins at ~1.30% and extends down to major resistance at 1.15%. Daily momentum is still mixed.”
“10s (1.904%)-Next resistance comes in some congestion in and around 1.80% then the low yields of 1.64%. Next support comes in ~2.20% with major support at 2.40% after that. Daily momentum is trying to lean bearishly this morning.”
“30s (2.58%)- Bonds have nearby support ~2.85% and then better support up near 3.10%. Next resistance around 2.40%. Daily momentum is leaning a bit more bearishly this morning.”
Key Quotes
“Treasuries have seen a modest bull flattening overnight even after Greece's Varoufakis cited progress in talks. EU peripheral spreads are tighter on solid buying in 5yrs on out.”
“Our overnight US rates flows saw nothing of consequence in cash and some Yen-based activity in the front end of the swaps curve. There was a block buyer of 30k in EDZ6 a bit ago. Overnight inter-dealer Treasury volume was 108% of the 10-day average.”
“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 now bearish with evidence of Bearish Divergence too...”
“5s (1.33%)- Next support sits at 1.46% and then stronger support comes in at 1.70% and just above. Next resistance begins at ~1.30% and extends down to major resistance at 1.15%. Daily momentum is still mixed.”
“10s (1.904%)-Next resistance comes in some congestion in and around 1.80% then the low yields of 1.64%. Next support comes in ~2.20% with major support at 2.40% after that. Daily momentum is trying to lean bearishly this morning.”
“30s (2.58%)- Bonds have nearby support ~2.85% and then better support up near 3.10%. Next resistance around 2.40%. Daily momentum is leaning a bit more bearishly this morning.”