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.
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
