HALISTER1: U.K. 2/10 Curve Gathering Steepening Momentum, May Test 51bps

U.K. 2/10 Curve Gathering Steepening Momentum, May Test 51bps

(Bloomberg) -- U.K. 2s10s curve move toward its 21-DMA at 51bps after Friday’s bear steepening triggered a break of the trailing trender line at 44bps, Bloomberg technical analyst Sejul Gokal writes.
  • See chart
  • Bloomberg Trender line (sensitivity 1) broken on Friday, signaling an end to the flattening trade from late June (~76bps when trender turned negative)
    • New trailing trender line (support) activated below price at 39bps
  • MACD crossing higher today from extreme lows
  • Additional steepening resistance 56bps and 61bps (Fibonacci’s)
  • NOTE: Aug. 10, Gilts 2s10s Narrowing Phase May Abate Near 34-29BPs Area
  • 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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