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10 Feb 2015
Technical outlook for treasuries – RBS
FXStreet (Barcelona) - The RBS Research Team shares the technical setup for 2s, 5s and 10s US treasuries.
Key Quotes
“Treasuries are lower and the curve steeper despite outperformance in Bunds.”
“New debt supply appears to be today's theme with $24bn in Treasury 3's being auctioned today along with Dutch 5yrs, Austrian 9's and 19yrs, German 5yr IL's, EFSF 30yrs and Belgian 15yrs.”
“Our overnight US rates flows saw fast$ receiving in 5yrs, decent 2-way action in 10's from real$ and good foreign real$ selling in 30yrs.”
“Overnight inter-dealer Treasury volume (4pm to 6am) was 130% of the 10-day average volume for the overnight session.”
“2s (0.66%)– Next major support doesn't emerge until ~0.80% where we found buyers back in the spring of 2011. Resistance seen at 0.40% where we'd close a gap left behind in late October. Daily momentum is bearish.”
“5s (1.52%)– Next major support comes in at 1.80% and just above. Nearby resistance lines up at ~1.155%. Daily momentum is solidly bearish.”
“10s (2.00%)–Next major resistance comes in at ~1.60%, the May 2013 'lows'. Next support comes in ~2.40% with major support at 2.66% after that. Daily momentum is bearish.”
Key Quotes
“Treasuries are lower and the curve steeper despite outperformance in Bunds.”
“New debt supply appears to be today's theme with $24bn in Treasury 3's being auctioned today along with Dutch 5yrs, Austrian 9's and 19yrs, German 5yr IL's, EFSF 30yrs and Belgian 15yrs.”
“Our overnight US rates flows saw fast$ receiving in 5yrs, decent 2-way action in 10's from real$ and good foreign real$ selling in 30yrs.”
“Overnight inter-dealer Treasury volume (4pm to 6am) was 130% of the 10-day average volume for the overnight session.”
“2s (0.66%)– Next major support doesn't emerge until ~0.80% where we found buyers back in the spring of 2011. Resistance seen at 0.40% where we'd close a gap left behind in late October. Daily momentum is bearish.”
“5s (1.52%)– Next major support comes in at 1.80% and just above. Nearby resistance lines up at ~1.155%. Daily momentum is solidly bearish.”
“10s (2.00%)–Next major resistance comes in at ~1.60%, the May 2013 'lows'. Next support comes in ~2.40% with major support at 2.66% after that. Daily momentum is bearish.”