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8 Jan 2015
US 10-year Treasury yield rises to 2%
FXStreet (Mumbai) - The 10-year Treasury yield in the US extended gains to trade at 2% as I write, after the Federal Reserve minutes released yesterday did little to shift the market expectation regarding the timing of the first interest rate hike in the US.
The yield has gained 5.5 basis points to trade at 2.008%, compared to the previous session’s close of 1.976%. The minutes also revealed policy makers saw a drop in Crude prices as a net positive for the US economy, while stating readiness to raise rates with core inflation at current levels. Moreover, the bank acknowledged the improving US economy amid gloomy global outlook.
The yields are also finding support ahead of the Friday’s December Non-farm payroll report, as expectations of a strong number run high after the upbeat ADP report released yesterday. A strong NFP print tomorrow would bring Fed more closer to the interest rate hike.
US 10-year Yield Technical Levels
The immediate resistance is seen at 2.009% (Dec. 16th low), breach of which shall open doors for a re-test of 2.047% (Dec. 17th low). Meanwhile, support is seen at 1.976% and 1.926%.
The yield has gained 5.5 basis points to trade at 2.008%, compared to the previous session’s close of 1.976%. The minutes also revealed policy makers saw a drop in Crude prices as a net positive for the US economy, while stating readiness to raise rates with core inflation at current levels. Moreover, the bank acknowledged the improving US economy amid gloomy global outlook.
The yields are also finding support ahead of the Friday’s December Non-farm payroll report, as expectations of a strong number run high after the upbeat ADP report released yesterday. A strong NFP print tomorrow would bring Fed more closer to the interest rate hike.
US 10-year Yield Technical Levels
The immediate resistance is seen at 2.009% (Dec. 16th low), breach of which shall open doors for a re-test of 2.047% (Dec. 17th low). Meanwhile, support is seen at 1.976% and 1.926%.