US 10-year yields to climb above 2% into 2022 – Credit Suisse
|The US 10-year yield has continued higher this week and is now very close to key support at 1.685/705%. A major base looks increasingly imminent. Economists at Credit Suisse look for a move above 2% into 2022.
A sharp rise in yields is likely
“US 10-year Bond Yields are back pressuring key long-term support at 1.685/705% after medium and long-term moving averages recently posted a bearish “death cross”, which pointed to a further deterioration in the trend following setup. Furthermore, short-term momentum is reaccelerating and weekly MACD remains outright bearish.”
“We believe a breakout above major support at 1.685/705% may be imminent, which would confirm a three-year basing structure, which would very likely take us above the year-to-date highs and retracement support between 1.775% and 1.82%.”
“Going into 2022, we maintain our long-held view that a move to 1.965/2.00% is likely in the first quarter, followed by retracement support at 2.16/18%.”
See: US 10-year Treasury yield could reach 2.05/10% on a break above 1.80% – SocGen
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.