10-year US Treasury yields to avert a deeper decline while above 1.65%/1.62% – SocGen

10-year US Treasury yields have staged a pullback. The 1.65%/1.62% region is crucial support – removal of which would open up a deeper down move towards the 200-day moving average (DMA) at 1.53%, economists at Société Générale report. 

Initial resistance aligns at 1.92%

“It is now gradually drifting towards interim support zone of 1.65%/1.62% representing the neckline of the previous Inverse Head and Shoulders. Defending this zone will be essential to avert a deeper down move.”

“In case the support zone of 1.65%/1.62% gets violated, the ongoing decline could extend towards the 200-DMA at 1.53% and the ascending trend line since 2020 at 1.48%.”

“First resistance is at 1.92%.”