US 10-year treasury yield drops below 200-day MA for the first time since November 2017
- The US 10-year yield fell below its 200-day moving average (MA) in Asia - its first break below the long-term average since November 2017.
- A sharp drop in the US ISM price paid index is likely weighing over the yields.
The US 10-year yield fell below its 200-day MA of 2.96 percent soon before press time, having shed six basis points yesterday.
The US ISM manufacturing index released yesterday showed the activity accelerated in November with growth in new orders, production and employment. The ISM’s Prices Index, however, fell by a sharp 10.9 points to 60.7%, after October’s reading of 71.6%, indicating a lower rate of inflation.
That inflation slowdown is likely dragging the treasury yields lower.
Technically speaking, the benchmark yield looks set for further losses toward 2.85 percent, having witnessed a double top breakdown last month.
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
