19 Feb 2015
Treasuries: daily momentum turning bullish – RBS
FXStreet (Barcelona) - Edward Acton, Treasury Strategist at RBS, gives the technical outlook for US Treasuries – 2s, 5s and 10s, viewing that the outlook remains mixed.
Key Quotes
“..our view on rates remains the same. We are duration neutral as rates are likely to chop ahead of bearish and bullish headline events in the near term."
“The technical outlook remains mixed, as short term momentum points toward lower yields and medium/long term momentum points bearishly toward higher.”
“We advise longs to use upticks to get flat.”
“2s (0.611%)– 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 now bullish.”
“5s (1.54%)– Next major support comes in at 1.80% and just above. Nearby resistance lines up at ~1.155%. Daily momentum is now turning bullishly.”
“10s (2.08%)–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 turning bullishly in overbought territory.”
Key Quotes
“..our view on rates remains the same. We are duration neutral as rates are likely to chop ahead of bearish and bullish headline events in the near term."
“The technical outlook remains mixed, as short term momentum points toward lower yields and medium/long term momentum points bearishly toward higher.”
“We advise longs to use upticks to get flat.”
“2s (0.611%)– 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 now bullish.”
“5s (1.54%)– Next major support comes in at 1.80% and just above. Nearby resistance lines up at ~1.155%. Daily momentum is now turning bullishly.”
“10s (2.08%)–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 turning bullishly in overbought territory.”