10yr US yields have managed to hold initially at the 50% retracement support at 1.89/90%. In light of the recent sell-off we allow for this level to hold for now and to see a modest a check back from here. However, the broad risks stays higher to 2.00/01% – triangle and 61.8% retracement support – next. We would again look for buying here and for it to hold initially. Through here would aim at 2.08% next.
Resistance
Short Strategy
Selloff Will Lead To Higher Yields
30yr. US has found buying on Monday at support at 3.09/125% which has seen yields check back lower. However, the break of former key support at 2.94/985% has been maintained, which leaves a bigger base in place. We therefore expect near-term strength to prove short-lived and to see an eventual push higher up to 3.17%, then 3.20/23%. We would expect buying here, but through it would target better support at 3.34/36% – channel props and the 38.2% retracement of the 2011-12 rally.
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