26 Mar 2015
Treasuries overbought again – RBS
FXStreet (Barcelona) - William O'Donnell, Head of US Treasury Strategy at RBS comments on the bond market and shares the technical outlook for 2s, 5s, 10s and 30s US treasuries.
Key Quotes
“Treasuries are modestly higher and off earlier highs driven by a 'risk off' tone on the spreading threat of regional conflict in the Middle East (Houthi rebels and Saudi Arabia traded bombs in Yemen sending WTI crude oil prices up over 4% overnight).”
“2s (0.594%)- 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 mixed.”
“5s (1.403%)- Next major support comes in at 1.80% and just above. Next resistance begins at ~1.30% and extends down to major resistance at 1.15%. Daily momentum is now mixed and overbought.”
“10s (1.915%)-Next resistance comes in some congestion in and around 1.80% then the low yields of 1.64%. Next support comes in ~2.40% with major support at 2.66% after that. Daily momentum is now mixed and overbought.”
“30s (2.495%)- Bonds don't have any solid support until 3.105%, the November "lows." Next resistance around 2.40%. Daily momentum is now mixed and overbought.”
Key Quotes
“Treasuries are modestly higher and off earlier highs driven by a 'risk off' tone on the spreading threat of regional conflict in the Middle East (Houthi rebels and Saudi Arabia traded bombs in Yemen sending WTI crude oil prices up over 4% overnight).”
“2s (0.594%)- 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 mixed.”
“5s (1.403%)- Next major support comes in at 1.80% and just above. Next resistance begins at ~1.30% and extends down to major resistance at 1.15%. Daily momentum is now mixed and overbought.”
“10s (1.915%)-Next resistance comes in some congestion in and around 1.80% then the low yields of 1.64%. Next support comes in ~2.40% with major support at 2.66% after that. Daily momentum is now mixed and overbought.”
“30s (2.495%)- Bonds don't have any solid support until 3.105%, the November "lows." Next resistance around 2.40%. Daily momentum is now mixed and overbought.”