HALISTER1: Treasury 10-Year Yield May Test 2% After Breaking Support: Tokai

Treasury 10-Year Yield May Test 2% After Breaking Support: Tokai

(Bloomberg) -- Ten-year Treasury yields may test 2% after breaking a 2.3% support line, which formed the lower end of a triple bottom, says Hideki Shibata, senior rates and currencies strategist at Tokai Tokyo Research Center.
  • North Korea tensions are heightening just as upward momentum of U.S. economic data is slowing, says Tokyo-based Shibata by phone
    • Markets are preparing for a possible military conflict, but the likelihood of such an occurrence is low
    • Lack of decisive resolution means tensions may linger
  • NOTE: Benchmark 10-year yield now down 4bps to 2.20%, lowest since Nov. 17
    • U.S. Vice President Pence reiterates that “all options are on the table” for dealing with North Korea

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Hideki Shibata (Tokai Tokyo Financial Holdings Inc)
Michael Pence (United States of America)

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