HALISTER1: U.S. 10-Yr Yield Breaches 55-DMA, Other Supports Near By: Charts

U.S. 10-Yr Yield Breaches 55-DMA, Other Supports Near By: Charts

(Bloomberg) -- While U.S. 10-yr yield closed Monday below 55-DMA support for the first time since Sept. 29, additional support layered just below may limit further declines near term, Bloomberg strategist David Finnerty writes.
  • U.S. 10-yr yields currently down 2bps to 2.39% in Asian morning trade after declining 6 bps overnight
    • Additional support is layered between 2.325%-2.376%, an area covering a series of closes between Jan. 5-17
  • Further selling of Treasuries may be limited in coming days as investors eye Fed’s Yellen semi-annual testimony Feb. 15 to see if a March rate hike remains on the table despite weak wage data
    • Market currently only pricing in a 24% probability of a March rate hike
    • Federal Reserve Bank of Philadelphia President Patrick Harker and John Williams San Francisco Fed president have both recently said that raising rates in March is a possibility
  • NOTE: David Finnerty is an FX 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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John Williams (Federal Reserve Bank of San Francisco/CA)
Patrick Harker (Federal Reserve Bank of Philadelphia/PA)

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