US: 10-year note yield under pressure - BBH

The analysis team at BBH points out that in the last two sessions, the US 10-year note yield fell 11 bp to 2.33%.  

Key Quotes

“Between April 18 and the middle of last week, the 10-year yield rose 26 bp.  Although the 2.30% level, which now houses the 20-day moving average has lost its significance, a move below 2.27% would open the door to back to the recent low yield near 2.16%.  The June note futures sold off from 126-20 on April 18 to 124-23 on May 11.  The bounce carried it back to 125-16 before the weekend. This met the 38.2% retracement of the decline.  The 50% is found 125-21.  The top of the previous congestion and 61.8% retracement is around 125-28.  Look for demand to emerge (support) ahead of 125-00.”