HALISTER1: Gilt Yield May Extend Retreat to 1.14% Support; Breaks Trendline

Gilt Yield May Extend Retreat to 1.14% Support; Breaks Trendline

(Bloomberg) -- U.K. 10-year bonds may extend their corrective rally, with the yield poised to accelerate declines to 1.14% Fibonacci support; while global yields retreat in unison, chart show gilts are expected to outperform bunds in near term, Bloomberg technical analyst Sejul Gokal writes.
  • See gilt 10y yield chart here; gilt yield at 1.29% now
  • Good support at 1.12%-1.14%, the 38.2% Fibonacci of the gilt selloff since mid-August, the 100 and 200-DMA’s
  • Yield gaps below uptrend from late September at 1.32%
  • Daily slow-stochastics is bearish and triggering downside cross-over today
  • Gilt futures drawing support, since December, from weekly ichimoku cloud and conversion line currently at 124.44/124.04
  • NOTE: Jan. 16, Gilt-Bund Spread Holds Compression Bias While Capped by 21-ExpMA
  • NOTE: Dec. 28, U.K. Gilt yield surge exhausting
  • 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.
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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