US 10yr Yields: Multi-decade downtrend over, dips in yield allow for repositioning for higher yields in 2017 – Westpac
|Tim Riddell, Research Analyst at Westpac, indicates that the daily momentum is now supportive for US 10yr Yields, opening potential for sound retracements towards the 2.40-2.46% and potentially a retest of the 2.60-65% area.
Key Quotes
“Patterns off the 2.60-65% area appear wholly corrective and though a broader consolidation may develop, the underlying trend is for rising yields.”
“Weekly
- Weekly momentum has potential to turn positive after the recent slide. Yield moves since mid-December’s high are decidedly corrective
- Despite breaching the spike below 2.20%, yields now look set to retest the upper half of their recent range within potential for moves extending to 3.00-3.15%”
“Monthly
- Little has changed in the broad scenario for higher yields, despite a pause in rise of monthly momentum.
- The style of the squeeze from 1.38% suggests that a multi-year trend change has occurred. Logged yields are still hugging the previous down-trend”
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