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Treasury yields slide on weak US data

FXStreet (Mumbai) - The yields across the short end and the long end of the treasury market curve declined after the disappointing US services PMI data and the Pending home sales data hit the wires.

The ten-year yield now trades at 2.243%, down from the day’s high of 2.298%, while the two-year note yield trades at 0.378%, down from the day’s high of 0.402%. Moreover, the bond prices gained, pushing yields lower after the reports came-in that the US Pending home sales increased 1% year-over-year in September, much lower than the market forecast of a 2.2% increase. Meanwhile, the preliminary services PMI reading for October came-in at 57.3, compared to the market expectation of 57.8.

Moreover, the stronger pickup in the wages was expected to push up housing purchases. The treasury yields are likely to remain well supported as markets brace up for the Federal Reserve (Fed) meet on Wednesday, wherein the central bank is widely expected to end its monthly bond buying program.

Ten-year yield Technical levels

The yield has an immediate resistance at 2.3%, while the support is located at 2.229% (Oct 24th low).

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