Halister News

(Bloomberg) -- Treasuries extending weekly advance, with 10Y and 30Y yields below YTD low closing levels and approaching YTD intraday lows, led by JGB, U.K. and German yield declines to record lows; strategic focus is on resistance levels where yield declines may stall.

• UST 10Y faces “fairly strong resistance” at 1.64%, break of which suggests a move to 1.61%, BMO strategist Aaron Kohli says in note
• 1st standard deviation of 2016 bull trend channel is 1.625%, and case can be made for next resistance at 1.59%, FTN strategist Jim Vogel says in note
• On a break by 10Y yield below 1.65%, “we have little, really nothing, until 1.60+%,” midway point of Feb. 11 selloff, then that day’s low of 1.53%, CRT strategist David Ader says in note
• 10Y yield has entered cheap end of 1.62%-1.65% resistance band; near-term tone positive under tactical support at 1.695%-1.745%, JPM strategists Jay Barry and Jason Hunter say in note
  • Don’t fade initial move toward 1.60%; however, consider establishing short position if trend “shows signs of deceleration as it extends”
• Technicals (roll-adjusted):
  • Resistance: 131-16 (Feb. 12 high), 131-27 (pivot r3)
  • Support: 130-20 (June 6 low), 130-14+ (June 3 mid price), 129-27 (June 3 low)