Halister News

(Bloomberg) -- Spanish 10-year yield may eclipse the July peak at 1.74% to set sights on 1.80% Fibonacci hurdle ahead of stronger resistance at 1.91%, the long-term average line (see chart here).

• Spain 10y yield now at 1.70% vs last Friday close at 1.60%, a 10bps rise mostly attributed to the revival of the Catalan independence campaign
• July peak on radar at 1.73%, with break above to provide impetus for potential rise toward 1.91%, 200- week MA
• Monday’s breakout gap seen to provide yield support (1.66%-1.64%) in the event of any relief rally; below 1.60% required to reassert the downside focus in yield
• Spain’s benchmark bonds fell to the lowest in almost three months after Catalan separatist leaders signaled they may be moving toward a unilateral declaration of independence (click here for more)
• NOTE: Sejul Gokal is a FICC technical strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice

To contact the reporter on this story: Sejul Gokal in London at sgokal1@bloomberg.net To contact the editors responsible for this story: Ven Ram at vram1@bloomberg.net Anil Varma