Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Treasury Yield May Meet Resistance at 2.4%: Technical Analysis

Feb. 13 (Bloomberg) -- Treasury 10-year note yields may stay below 2.4 percent after having completed a two-month climb, Sumitomo Mitsui Banking Corp. said, citing trading patterns.

The level is the peak of a so-called double top formed in October 2011 and March 2012 and may meet resistance, said Daisuke Uno, chief strategist in Tokyo at a unit of Sumitomo Mitsui, Japan’s second-largest bank by market value. Yields rose to 2.06 percent on Feb. 4, the most since April 2012, advancing from a a record low of 1.38 percent marked on July 25 last year.

“Ten-year rates climbed above 2 percent last week, but the strong resistance around 2.4 percent will cap a further rise,” Uno said. “I expect yields to move between 1.6 and 2.1 percent in the short term.”

Benchmark 10-year note yields were unchanged at 1.98 percent as of 9:18 a.m. in Tokyo, according to Bloomberg Bond Trader prices. The 1.625 percent note due in November 2022 was at 96 7/8. Yields climbed 37 basis points over the past two months. A basis point is 0.01 percentage point.

In technical analysis, investors and analysts study charts of trading patterns to forecast changes in a security, commodity, currency or index. So-called resistance is where orders to trade bonds may be clustered.

The double-top reversal is a pattern typically found on bar charts, line charts and candlestick graphs. The formation is made up of two consecutive peaks that are roughly equal, with a moderate trough in-between.

To contact the reporter on this story: Yumi Ikeda in Tokyo at yikeda4@bloomberg.net

To contact the editor responsible for this story: Rocky Swift at rswift5@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.