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10 Feb 2015
US 10-year Treasury yield rises to 2%
FXStreet (Mumbai) - The 10-year Treasury yield in the US rose to 2% for the first time in over a month as markets continue to speculate an early interest rate hike in the US after last week’s strong US jobs data.
Increased rate hike expectations in the US
The official data released in the US on Friday showed the economy added 257K jobs in January, up from the expected 236K, which led to a rise in confidence in the job market. This was the 11th month in a row, when job gains were over 200,000. Hence, a strong performance of the labor markets triggered speculation that the Federal Reserve may hike interest rate this year. Consequently, the 10-year Treasury yield rose from 1.8% to hit a high of 2% today.
However, the gains may be capped to a certain extend due to a rise in safe haven demand for the Us Treasuries amid the Greek issue and escalating conflict in Ukraine.
US 10-year yield Technical Levels
The yield currently trades at 2.00%; up 5.4 basis points for the day. The immediate resistance is seen at 2.118%, above which gains could be extended to 2.029%. Meanwhile, major support is seen at 1.952% and 1.886%.
Increased rate hike expectations in the US
The official data released in the US on Friday showed the economy added 257K jobs in January, up from the expected 236K, which led to a rise in confidence in the job market. This was the 11th month in a row, when job gains were over 200,000. Hence, a strong performance of the labor markets triggered speculation that the Federal Reserve may hike interest rate this year. Consequently, the 10-year Treasury yield rose from 1.8% to hit a high of 2% today.
However, the gains may be capped to a certain extend due to a rise in safe haven demand for the Us Treasuries amid the Greek issue and escalating conflict in Ukraine.
US 10-year yield Technical Levels
The yield currently trades at 2.00%; up 5.4 basis points for the day. The immediate resistance is seen at 2.118%, above which gains could be extended to 2.029%. Meanwhile, major support is seen at 1.952% and 1.886%.