HALISTER1: U.S. Yield May Rise to 2.4% as It Nears Resistance: SMBC Trust

U.S. Yield May Rise to 2.4% as It Nears Resistance: SMBC Trust

(Bloomberg) -- Treasury 10-year yield may climb to 2.4%, a level it approached in July, if it breaks 2.20%, says Simon Pianfetti, senior manager in the market solutions department at SMBC Trust Bank in Tokyo.
  • U.S. macro backdrop has improved since June, with Citigroup’s U.S. economic surprise index almost back to neutral
  • “The North Korea news flow is almost gone, risk-on mood is strong and Treasuries were sold as a result, along with the yen”
  • Important to monitor China flows in Treasuries over the short-term
    • China is preparing to sell $2b in bonds this month, WSJ reports, citing unidentified bankers in Hong Kong
    • “China’s intentions on Treasuries are not clear, but regarding FX policy and CNY, it’s obvious they want to curb yuan strength in the short term,” Pianfetti says
  • Treasury 10-year yield at 2.19% after climbing 15bps in previous four days
To contact the reporter on this story: Netty Ismail in Singapore at nismail3@bloomberg.net To contact the editors responsible for this story: Tan Hwee Ann at hatan@bloomberg.net Patricia Lui

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Simon Pianfetti (SMBC Trust Bank Ltd)

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