4 May 2015
US 10-year yields headed for a break of 2.25%? - BBH
FXStreet (Guatemala) - Analysts at Brown Brothers Harriman noted that the US 10-year Treasury yield rose 20 bp over the course of last week, despite some disappointing data.
Key Quotes:
"Two factors that contributed to the increase was the active new corporate bond sales, which often uses Treasuries as a hedge, and the sell-off in European bonds that may have dragged the US down as well."
"There is a band of congestion just above last week's 2.12% high and extends to the 2.25% area."
"A strong employment report could see this area approached while a week report would likely see a rejection of the 2%+ yields and a return to the lower end of the range around 1.85%."
Key Quotes:
"Two factors that contributed to the increase was the active new corporate bond sales, which often uses Treasuries as a hedge, and the sell-off in European bonds that may have dragged the US down as well."
"There is a band of congestion just above last week's 2.12% high and extends to the 2.25% area."
"A strong employment report could see this area approached while a week report would likely see a rejection of the 2%+ yields and a return to the lower end of the range around 1.85%."