11 Feb 2015
Technical outlook for treasuries – RBS
FXStreet (Barcelona) - Edward Acton of RBS, shares the technical outlook for 2s, 5s, 10s and 30s treasuries.
Key Quotes
“Treasuries are higher and the curve is steeper in response to modest rallies overnight in German and UK rates.”
“Our overnight US rates flows saw better int'l RM selling of 30s, likely a setup for the 30yr gilt auction and Central Bank selling of 7s. Overnight inter-dealer Treasury volume (4pm to 6am) was 50% of the 10-day average volume for the overnight session, with Japan on holiday”
“2s (0.640%)– Next major support doesn't emerge until ~0.80% where we found buyers back in the spring of 2011. Resistance seen at 0.40% where we'd close a gap left behind in late October. Daily momentum is mixed.”
“5s (1.49%)– Next major support comes in at 1.80% and just above. Nearby resistance lines up at ~1.155%. Daily momentum is bearish.”
“10s (1.98%)–Next major resistance comes in at ~1.60%, the May 2013 'lows'. Next support comes in ~2.40% with major support at 2.66% after that. Daily momentum is bearish.”
“30s (2.56%)– Bonds don't have any solid support until 3.105%, the November "lows." Local resistance is probably best derived by the all-time highs in US1 futures at 153-11. Daily momentum is bearish.”
Key Quotes
“Treasuries are higher and the curve is steeper in response to modest rallies overnight in German and UK rates.”
“Our overnight US rates flows saw better int'l RM selling of 30s, likely a setup for the 30yr gilt auction and Central Bank selling of 7s. Overnight inter-dealer Treasury volume (4pm to 6am) was 50% of the 10-day average volume for the overnight session, with Japan on holiday”
“2s (0.640%)– Next major support doesn't emerge until ~0.80% where we found buyers back in the spring of 2011. Resistance seen at 0.40% where we'd close a gap left behind in late October. Daily momentum is mixed.”
“5s (1.49%)– Next major support comes in at 1.80% and just above. Nearby resistance lines up at ~1.155%. Daily momentum is bearish.”
“10s (1.98%)–Next major resistance comes in at ~1.60%, the May 2013 'lows'. Next support comes in ~2.40% with major support at 2.66% after that. Daily momentum is bearish.”
“30s (2.56%)– Bonds don't have any solid support until 3.105%, the November "lows." Local resistance is probably best derived by the all-time highs in US1 futures at 153-11. Daily momentum is bearish.”