Halister News

(Bloomberg) -- 10Y yield’s breach of 1.65%-1.61% removed “a cluster of resistance levels,” which may act as a catalyst to retest record lows of 2012 at 1.40%-1.38%, with scope to 1.09%-1.04%, Credit Suisse technical strategists led by David Sneddon say in note.

• A break above 1.73%-1.79% is “needed to ease the immediate bullish tone”
• 5Y yield has “trend resistance” at 0.95%; if broken, next targets are 0.92%, 0.82% (78.6% retracement of 2012-2014 selloff), 0.625%, 0.535% (record low)
• 30Y yield break of resistance at 2.44% clears the way for retest of 2.22% record low, “with scope for an overshoot to 2.15%”
• 2Y yield has scope to 61.8% retracement resistance at 0.535%-0.515%, “but would expect a fresh floor here”
• 2/10 spread close below 100bp target 80bp (61.8% retracement of steepening since 2000); 2/30 spread has trend support at 178bp-170bp, below which it has scope to 140bp
• 10/30 spread has risk higher; a close above resistance at 86bp-88bp targets 95bp, then 107bp