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The Ten-year Treasury yields remain weak despite an upbeat GDP report

FXStreet (Mumbai) - The Ten-year treasury yields in the US trade weak despite as the rise in the weekly jobless claims coupled with the weakness in the equity futures overshadowed an upbeat Q3 US GDP report.

The Ten-year yield is trading at 2.29% compared to the yesterday’s high of 2.362%. Moreover, the yields have declined steadily throughout the day as the preliminary annualized GDP number for Q3 was seen at 3%, much below the previous reading of 4.6%. The weakness in the European equities and the US equity futures also pushed the yields lower.

Moreover, the yields are not able to rise despite Q3 GDP printing at 3.5%, much higher than the expected print of 3%. The rise may have been contained by a disappointing weekly jobs data. Initial claims for state unemployment benefits increased 3,000 to a seasonally adjusted 287,000 for the week ended Oct. 25. However, the four-week moving average of claims fell 250 to 281,000. Claims at these levels indicate a strengthening in labor market conditions.

The Ten-year yield may fall further if the US equities extend losses ahead in the day. Federal Reserve Chairman Yellen is scheduled to speak at Washington today at 13:00 GMT. Any dovish talk would further pressurize the yields.

Ten-year yield Technical levels

The yield has an immediate support at 2.276%, below which it can fall to 2.25%. On the flip side, the yield may re-test 2.345% if it manages to take back 2.3% level.

GBP/USD down to 1.5950 amid upbeat US GDP

The Dollar is advancing across the board amid a better than expected US GDP in the Q3. So the GBP/USD fell to test 1.5950 area just after the report. However the pair managed to bounce and it returned to pre-data levels.
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