US 10-year Treasury yield is staging a rebound from 50-DMA support

The yield on the benchmark US 10-year Treasury note is witnessing a rebound from 50-DMA support of 2.25%. 

The yield fell from 2.3% to 2.26% on Tuesday after Trump’s health care debacle triggered fears of delay in the much awaited tax reforms. However, bond markets have already priced-in the ailure of Trump bump, which is evident from the fact that the yields hit lowest since November in mid June. 

The 10-year yield was last seen trading around 2.277%; up 1.4 basis points on the day. At the short-end of the curve, the 2-year yield is up nearly one basis point. 

The spread or difference between the 10-yr yield and the 2-yr yield, also a measure of the slope of the yield curve, stands at 0.915 (flatter yield curve) from the recent high of 0.99.