3 Feb 2015
Technical outlook for Treasuries – RBS
FXStreet (Barcelona) - Analysts at RBS comment on the bond market and give the technical outlook for 2s, 5s and 10s Treasuries.
Key Quotes
“Treasuries are closely following Bunds lower this morning as Greek spreads (-100bp) lead peripherals tighter on good back-end inflows.”
“Our overnight US rates flows saw Asian real$ receiving in 2's and buying in 5's and we had fast$ buying in 10's as well.”
“In futures, there was a 2.5k block sale of TY at 28 and there appeared to be a 5k block peripheral tightener (-5k IKH5 -> +3930k RXH).”
“Overnight inter-dealer Treasury volume (4pm to 6am) was 107% of the 10-day average volume for the overnight session.”
“2s (0.472%)– 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 mildly bearish this morning.”
“5s (1.22%)– Next major support comes in at 1.80% and just above. Nearby resistance lines up at ~1.155%. Daily momentum is now mixed.”
“10s (1.72%)– Next major resistance comes in at ~1.60%, the May 2013 'lows'. Next support comes in ~2.40% with major support at 2.66% after that. Daily momentum is now mixed and still in overbought territory.”
Key Quotes
“Treasuries are closely following Bunds lower this morning as Greek spreads (-100bp) lead peripherals tighter on good back-end inflows.”
“Our overnight US rates flows saw Asian real$ receiving in 2's and buying in 5's and we had fast$ buying in 10's as well.”
“In futures, there was a 2.5k block sale of TY at 28 and there appeared to be a 5k block peripheral tightener (-5k IKH5 -> +3930k RXH).”
“Overnight inter-dealer Treasury volume (4pm to 6am) was 107% of the 10-day average volume for the overnight session.”
“2s (0.472%)– 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 mildly bearish this morning.”
“5s (1.22%)– Next major support comes in at 1.80% and just above. Nearby resistance lines up at ~1.155%. Daily momentum is now mixed.”
“10s (1.72%)– Next major resistance comes in at ~1.60%, the May 2013 'lows'. Next support comes in ~2.40% with major support at 2.66% after that. Daily momentum is now mixed and still in overbought territory.”