Halister News

(Bloomberg) -- Treasuries grind higher overnight, extending gains after breaking through 1.70% in Asia hours; strategists maintain mixed view on duration, curve.

• Maintain longs in 10Y Treasuries, initiated at 1.90% to target 1.60%; recommend moving target to 1.50%, stop to 1.80%, re-enter longs at 1.90%, writes BNP in a client note
• Hold medium-term 5s30s curve flattening bias, flattening pressure from global bond rally supporting view; technicals favor more consolidation above 121.5-124.5bp support, bounces limited to 130bps/134bp resistance, writes JPMorgan in a note
• Yday’s flattening confirm a bearish evening star pattern across the curve, however daily momentum still favors steepeners and economic data between now and retail sales unlikely to do much to sway the Fed, writes RBS in a client note
  • Recognize that favored technical pattern is now battling fundamental view: RBS
• Technicals:
  • Resistance: 131-09+ (Feb. 24 high), 131-16 (Feb. 12 high), 131-29 (3sd from 50-day range avg.)
  • Support: 130-20 (June 6 low), 130-14+ (June 3 mid price), 129-27 (June 3 low)