24 Mar 2015
Treasuries remain bullish, but inching towards overbought levels – RBS
FXStreet (Barcelona) - William O'Donnell, Head of US Treasury Strategy at RBS, shares the technical outlook for US treasuries, viewing that the momentum remains bullish but 5s, 10s and 30s treasuries are heading towards overbought levels.
Key Quotes
“2s (0.56%)- 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 bullish.”
“ 5s (1.38%)- 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 bullish and inching toward overbought readings.”
“10s (1.90%)-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 still bullish but inching toward overbought readings.”
“30s (2.495%)- Bonds don't have any solid support until 3.105%, the November "lows." Next resistance around 2.40%. Daily momentum is bullish but momentum is now into overbought readings.”
Key Quotes
“2s (0.56%)- 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 bullish.”
“ 5s (1.38%)- 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 bullish and inching toward overbought readings.”
“10s (1.90%)-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 still bullish but inching toward overbought readings.”
“30s (2.495%)- Bonds don't have any solid support until 3.105%, the November "lows." Next resistance around 2.40%. Daily momentum is bullish but momentum is now into overbought readings.”