US 10-year yields to remain sidelined – UOB
Victor Yong, Researcher at UOB Group, assessed the prospects for US 10-year yields in the next periods.
“The 10Y yield spent last week's holiday shortened week between 2.32% and 2.36% which made for a rather uninspiring technical backdrop”.
“In the immediate horizon, a neutral bias prevails until 2.40% above can be taken out, conversely significantly lower yields seems unlikely now that investors attention will become increasingly focused on the fate of the Senate's Tax Reform bill”.
“Net non-commercial combined positions from CFTC data showed a second week of longs building in the 10Y tenor, illustrating some appetite for yields above 2.30% and further adding to the range bound nature of markets at the moment”.