8 Jul 2013
Flash: Friday’s price action reveals US rate signals – RBS
FXstreet.com (New York) - According to the RBS Research Team, “There are widespread signs that investors are now defensively positioned for higher rates.”
Moreover, in the medium-term momentum signals are deeply oversold for US rates. We recommend to cover shorts, be long 2-year notes (stop on a daily close above 0.43% maybe) and be ready to extend durations when longer-term momentum signals finally confirm that the bear trend in place since has ended – “Friday's price action tells you that long exposures remain.” the team adds.
Moreover, in the medium-term momentum signals are deeply oversold for US rates. We recommend to cover shorts, be long 2-year notes (stop on a daily close above 0.43% maybe) and be ready to extend durations when longer-term momentum signals finally confirm that the bear trend in place since has ended – “Friday's price action tells you that long exposures remain.” the team adds.