Treasury Yield Curve Flattening May Hasten After Support Breaks
- Steepening trend line in two-, 10-year yield spread gives way
- Charts point to support at Fibonacci convergence zone
HSBC's Steven Major Shatters Myths of Fixed-Income Market
This article is for subscribers only.
The flattening of the U.S. yield curve may accelerate, technical patterns on the chart suggest.
The difference between two- and 10-year yields may approach 113 basis points, a Fibonacci confluence zone, after the curve broke down below the four-month steepening trend line and the 21-day moving average at 125-124 basis points.