9 Jan 2015
US 10-yr Treasury yield declines ahead of NFP data
FXStreet (Mumbai) - The 10-year yield in the US declined today as the markets await the December month Non-farm Payrolls data in the US.
The yield currently trades 1.9 basis points lower at 1.997%, compared to the previous session’s close of 2.03%. The yields came under pressure after the Federal Reserve policy maker Charles Evans mentioned that Fed should be in no hurry to raise interest rates. Meanwhile, the NFP data is likely to show the US economy added 240K jobs in December, compared to the stellar 321K additions seen in November. The unemployment rate is seen falling to 5.7%.
Moreover, a better-than-expected NFP print would push the Fed more closer to an interest rate hike. It would be interesting to see how equity markets react to such a data. A bout of risk aversion would weigh over 10-yr Treasury yield, although we could see yields hardening at the short-end of the curve- 2-year yield.
10-yr yield Technical Levels
The immediate support is seen at 1.988%, under which losses could be extended to 1.968%. Meanwhile, resistance is seen at 2.03% and 2.047%.
The yield currently trades 1.9 basis points lower at 1.997%, compared to the previous session’s close of 2.03%. The yields came under pressure after the Federal Reserve policy maker Charles Evans mentioned that Fed should be in no hurry to raise interest rates. Meanwhile, the NFP data is likely to show the US economy added 240K jobs in December, compared to the stellar 321K additions seen in November. The unemployment rate is seen falling to 5.7%.
Moreover, a better-than-expected NFP print would push the Fed more closer to an interest rate hike. It would be interesting to see how equity markets react to such a data. A bout of risk aversion would weigh over 10-yr Treasury yield, although we could see yields hardening at the short-end of the curve- 2-year yield.
10-yr yield Technical Levels
The immediate support is seen at 1.988%, under which losses could be extended to 1.968%. Meanwhile, resistance is seen at 2.03% and 2.047%.