1 Dec 2014
US 10-year yield hits six-week low
FXStreet (Mumbai) - The falling crude and other commodity prices pushed the Ten-year bond yield in the US down to six-week low today as inflation expectations are likely to weaken on falling energy prices.
The US Ten-year yield fell more than two basis points to a one-week low of 2.15% today as the crude oil prices at both the sides of the Atlantic fell more than 12% since Thursday’s OPEC meet results. Meanwhile, the Ten-year break-evens, known to represent inflation expectations, fell to the lowest level in three-years.
The weakness in the yields was exacerbated earlier today by the slowdown in the Chinese manufacturing data for the second consecutive month. Moreover, the falling crude prices along with the faltering global economy has pushed the benchmark bond yields lower across the globe since mid-November.
The Ten-year treasury yields may extend losses today if the Markit and ISM PMI manufacturing indices come-in surprisingly weaker-than-expected.
US Ten-year yield Technical Levels
The yield has an immediate support located at 2.14-2.135%, under which losses could be extended to 2.07%. Meanwhile, immediate resistance is seen at 2.182% and 2.2%.
The US Ten-year yield fell more than two basis points to a one-week low of 2.15% today as the crude oil prices at both the sides of the Atlantic fell more than 12% since Thursday’s OPEC meet results. Meanwhile, the Ten-year break-evens, known to represent inflation expectations, fell to the lowest level in three-years.
The weakness in the yields was exacerbated earlier today by the slowdown in the Chinese manufacturing data for the second consecutive month. Moreover, the falling crude prices along with the faltering global economy has pushed the benchmark bond yields lower across the globe since mid-November.
The Ten-year treasury yields may extend losses today if the Markit and ISM PMI manufacturing indices come-in surprisingly weaker-than-expected.
US Ten-year yield Technical Levels
The yield has an immediate support located at 2.14-2.135%, under which losses could be extended to 2.07%. Meanwhile, immediate resistance is seen at 2.182% and 2.2%.