23 Mar 2015
Daily momentum bullish for treasuries – RBS
FXStreet (Barcelona) - William O'Donnell, Head of US Treasury Strategy at RBS, shares the technical outlook for US 2s, 5s and 10s treasuries, noting that the daily and long-term technicals remains bullish.
Key Quotes
”Long term technicals are still bullish for the belly with a return to FLAT in 2s5s10s possible over the coming months (expected 3-6mo range +53bp to FLAT).”
“On Treasuries, long-term sellers/bears should remain patient as short term technical still aim bullishly with 10's now through resistance ~2.08%.”
“2s (0.56%)- 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 bullish.”
“5s (1.39%)- Next major support comes in at 1.80% and just above. Next resistance begins at ~1.30% and extends down to major resistance at 1.15%. Daily momentum is bullish.”
“10s (1.92%)-Next resistance comes in some congestion in and around 1.80% then the low yields of 1.64%. Next support comes in ~2.40% with major support at 2.66% after that. Daily momentum is still bullish.”
Key Quotes
”Long term technicals are still bullish for the belly with a return to FLAT in 2s5s10s possible over the coming months (expected 3-6mo range +53bp to FLAT).”
“On Treasuries, long-term sellers/bears should remain patient as short term technical still aim bullishly with 10's now through resistance ~2.08%.”
“2s (0.56%)- 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 bullish.”
“5s (1.39%)- Next major support comes in at 1.80% and just above. Next resistance begins at ~1.30% and extends down to major resistance at 1.15%. Daily momentum is bullish.”
“10s (1.92%)-Next resistance comes in some congestion in and around 1.80% then the low yields of 1.64%. Next support comes in ~2.40% with major support at 2.66% after that. Daily momentum is still bullish.”