US 10yr Yields: Multi-decade downtrend over, dips in yield allow for repositioning for higher yields in 2017 – Westpac

Sandeep Kanihama FXStreet Contributor

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”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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