US 10-yr Treasury yield trades above 5-DMA

FXStreet (Mumbai) - The 10-year Treasury yield in the US continues to inch higher throughout the European session, to trade above the 5-DMA located at 2.088%.

The yield currently trades 3 basis points higher for the day at 2.101%, compared to the previous session’s close of 2.061%. Moreover, the yields are inching higher as markets expect the Federal Reserve (Fed) to drop the “considerable time” phrase in its policy statement today, a move considered by many as an indication of the end of the Zero Interest Rate Policy adopted by major central bankers since the crash of 2008.

Meanwhile, the 2-yr yield, a barometer of short-term interest rate expectations, has shot up 2.1 basis points to trade at 0.581%.

10-yr Treasury yield Technical Levels

The immediate resistance is seen at 2.136%, above which gains could be extended to 2.15%. Meanwhile, support is seen at 2.088% (5-DMA), under which 2.047% level could be tested.

Credit Suisse: USD likely to have a directional reaction to the FOMC statement - eFXnews

The eFXnews Team notes Credit Suisse feels that USD is likely to have a very directional reaction to the FOMC statement, and expects Fed to replace “considerable time” with something that preserves flexibility in the rate hike timing.
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