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27 Jan 2015
Greek bonds biggest movers, Treasuries likely muted - RBS
FXStreet (Barcelona) - Analysts at RBS comment on the bond market and further share the technical outlook for US treasuries, noting that the daily momentum for 2yr and 10yr treasuries remains bearish.
Key Quotes
“10yr Treasuries posted a 3bps range overnight, likely muted due to the US east coast snow storm, at least to some degree. The biggest movers were Greek bonds, which saw their 10yrs 50bps higher in yield and their 3yrs about 200bps higher in yield. This had little influence on other markets, though we did see some profit taking in peripheral spreads, while bunds put in a similar range to Treasuries.”
“2s (0.515%)– Next major support doesn't emerge until ~0.80% where we found buyers back in the spring of 2011. Resistance next up at ~0.40% where we'd close a gap left behind in late October. Daily momentum is mildly bearish.”
“10s (1.80%)–Next resistance comes in at 1+yr channel lows ~1.80% or roughly where we're opening again this morning. The 1.70% level is resistance after that. Next major support comes in way up ~2.40% with other major support at 2.66%. Daily momentum leans a bit bearish now.”
Key Quotes
“10yr Treasuries posted a 3bps range overnight, likely muted due to the US east coast snow storm, at least to some degree. The biggest movers were Greek bonds, which saw their 10yrs 50bps higher in yield and their 3yrs about 200bps higher in yield. This had little influence on other markets, though we did see some profit taking in peripheral spreads, while bunds put in a similar range to Treasuries.”
“2s (0.515%)– Next major support doesn't emerge until ~0.80% where we found buyers back in the spring of 2011. Resistance next up at ~0.40% where we'd close a gap left behind in late October. Daily momentum is mildly bearish.”
“10s (1.80%)–Next resistance comes in at 1+yr channel lows ~1.80% or roughly where we're opening again this morning. The 1.70% level is resistance after that. Next major support comes in way up ~2.40% with other major support at 2.66%. Daily momentum leans a bit bearish now.”