06 January 2010

US10YY : Time to sell TYH0

  • Previously was looking for US10YY to extend to 4.00% and beyond.
  • High thus far 3.92% from where TYH0 has rallied strongly even in the face of a good ISM.
  • Last 3.78%, where I have just sold TYH0 (initiation).
  • Monthly : Small pull-back from sharp yield spike (breakout) in Dec09. Higher yields expected.
  • Weekly : A yield bull flag, looking at 4.14%.
  • Daily : This pull-back to UpTL is for buying yields.
  • [Addendum : Average all-in @ 3.77%]

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