Halister News

(Bloomberg) -- Gilt 10-year yields may see a rollover if important hurdle holds at 119-120bps and any strength seen as a tactical unwind from oversold conditions, Bloomberg technical analyst Sejul Gokal writes; consolidation may form the basis of a larger slump toward 136-140bps.

• See live chart here
• Yield now at 1.16% after testing 1.19%-1.20%, which is confluence of the 61.8% head-and-shoulders Fibonnaci projection, the Dec. yield downtrend and 200-DMA
  • Head-and-shoulders pattern completed Oct. 7 has a measured objective set at 1.36%
• Support at 106bps, 100bps, 98bps-96bps
• Oct. 10 outlook had flagged possibility that U.K. 10-year yield projected toward pre-Brexit High, with interim Fibonacci projection at 1.20%
• Pricing for the next rate moves from the BOE now leans toward rises in Q4 2017, whereas a full 10bps cut was priced in on Sept. 30; see more here
• NOTE: U.K. yield surge may continue amid speculation of a hard Brexit and global curve steepening, analysts say

• NOTE: Sejul Gokal is a technical strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice.