Long 10 year on this breakout

29 июн. 2017 г.

The 10 year treasury has been being hit with massive amounts of buying from overseas funds that has been pushing our yields further lower even though the Fed raised rates .25 basis points to 1-1.25 in June and keeping the tone for another later this year (possibly December), along side the restructuring of the balance sheet that will release bonds and mbs from the financial crisis onto the market sending the yield higher. This will widen the spread on the 2 - 10 and the bank stocks can continue making higher margins off their loans and deposits (BAC).
The technicals look sharp as a bullish breakout of the recent downtrend from the march highs of 2.62 and the break above the 200 dma on strength and MACD confirmation of a bullish crossover in play.
I'd like to see the yield above 2.30-2.31 in the next couple days for confirmation as that support level broke in May will now act as resistance and is the last hurdle before a possible retest of 2.62 resistance.

11 июл. 2017 г.

Заметка

10 Year looks to be experiencing some side ways tradings at the 2.41 resistance level made back in May before falling. 2.41 is key hurdle to break before retesting 2.62. If fails, look for move down to 2.24 support which is the upper end of the regression channel where it should reverse back upward.