US 10-year yields: Third decline in four weeks - BBH

US 10-year yields slipped a couple of basis points last week and it was the third decline in four weeks as the yield posted its lowest weekly close since June 23, notes the analysis team at BBH.

Key Quotes

“The yield looks poised this year's low near 2.10%.  Our underlying concern is that if the market is unwinding the Trump trade, the 10-year yield may return toward levels seen before last November's election (1.80%-1.85%) unless something changes.   The September 10-year note futures has spent the last several sessions knocking on 127-00.  The intra-day contract high was set in mid-June near 127-08.   A move above there would target the 50% retracement of the decline since July 2016 high (134-07) which is found near 128-20.  The technical indicators are getting stretched, but no sign of an imminent top.”