- Weekly chart for US10YY : The yield band between 3.10%-3.14% shaping up to be quite important. Note this is where yields have bottomed out several times in past year or so; the most recent being the Fukushima spike low at 3.14%.
- Short in TYM1 initiated at 122-07 (appx 3.175%). Stop close below 3.10%.
- Tactical trade only. Non-trending chart which I usually avoid.
3 comments:
Very well established yield support for the 10s. Plus supply this week, we really need to see some form of concession. Question is if yields can break back up, above 3.25. Do note that Bernie is speaking on Thur... and we have the FED buyback schedule coming up...
Then again... 3.25 is not difficult to "break" on the charts as the OTR is Feb21 and the WI is already trading close to 3.25 now. So you have a gap up of 3.5bps on the chart for a day change.
Cut loss @ 122-14
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