US 10-year treasury yield clocks fresh 7-year high in Asia
|- US 10-year yield clocks fresh 7-year high of 3.128 percent.
- The easing US-China trade tensions may have pushed up yields.
The yield on the 10-year Treasury note rose to 3.128 percent - the highest level since July 2011 on the increased probability that the Federal Reserve may have to hike interest rates more aggressively than previously expected.
Further, the easing US-China trade tensions put a bid under the US stocks yesterday, thus allowing a continued rise in the treasury yields. Debt prices and yields move in opposite direction and yields usually drop during risk aversion in the equities.
Also, the uptick in the treasury yields is pretty much in line with the bull flag breakout seen in the daily chart and the long-run inverse head-and-shoulders bullish reversal seen in the weekly chart.
As of writing, the yield is trading at 3.12 percent and looks set to rally further as indicated by the bullish technical setup.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.