Japan Yield to Drop to 0.9% on Support Break: Technical Analysis
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Yields on Japan’s 10-year government bonds may reach the lowest level since October 2010, should they break below support at about 0.94 percent, Barclays Capital Japan Ltd. said, citing trading patterns.
Ten-year yields declined to 0.94 percent on Nov. 17 and 18, 0.935 percent on Jan. 16, and 0.94 percent on Feb. 3, forming “triple bottoms,” according to Reiko Tokukatsu, a senior fixed-income strategist at Barclays in Tokyo. Yields are poised to test the support line connecting the three bottoms, she said.