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2 Apr 2015
Treasuries extend gains as US stocks slip – RBS
FXStreet (Barcelona) - William O'Donnell, Head of US Treasury Strategy at RBS comments on the treasury market and further shares the key technical levels for 2s, 5s, 10s and 30s treasuries.
Key Quotes
“Treasuries have extended gains on a further slip in US stocks (Put/Call ratio for S&Ps highest since 2008 says Bloomberg), ongoing jitters over the Greek and Iran talks, yesterday's Atlanta Fed updated Q1 GDPNow forecast of 0.0% and hopes for more monetary easing in Japan and China.”
“The belly has led the charge higher from the Asian session lows, helped along by some block buying in FV futures.”
“Our overnight US rates flows held up even as key EU markets prep for a 4 day weekend. We had Asset mgr. selling in 30yrs, good block buying in FV futures (15k between 120-16 and 120-18 an hour ago) and some fast$ paying in 5yrs. Overnight Treasury volume (4pm to 6am) was 142% of the 10-day average volume for the overnight hours."
“2s (0.52%)- Next major support doesn't emerge until ~0.80% where we found buyers back in the spring of 2011. Resistance seen at 0.40% where we'd close a gap left behind in late October. Daily momentum is mixed.”
“5s (1.30%)- Next major support comes in at 1.80% and just above. Next resistance begins at ~1.30% and extends down to major resistance at 1.15%. Daily momentum is overbought and mixed/aimless.”
“10s (1.835%)-Next resistance comes in some congestion in and around 1.80% then the low yields of 1.64%. Next support comes in ~2.40% with major support at 2.66% after that. Daily momentum is overbought and still mixed.”
“30s (2.445%)- Bonds don't have any solid support until 3.105%, the November "lows." Next resistance around 2.40%. Daily momentum is a mess-almost at overbought levels and looking a bit aimless.”
Key Quotes
“Treasuries have extended gains on a further slip in US stocks (Put/Call ratio for S&Ps highest since 2008 says Bloomberg), ongoing jitters over the Greek and Iran talks, yesterday's Atlanta Fed updated Q1 GDPNow forecast of 0.0% and hopes for more monetary easing in Japan and China.”
“The belly has led the charge higher from the Asian session lows, helped along by some block buying in FV futures.”
“Our overnight US rates flows held up even as key EU markets prep for a 4 day weekend. We had Asset mgr. selling in 30yrs, good block buying in FV futures (15k between 120-16 and 120-18 an hour ago) and some fast$ paying in 5yrs. Overnight Treasury volume (4pm to 6am) was 142% of the 10-day average volume for the overnight hours."
“2s (0.52%)- Next major support doesn't emerge until ~0.80% where we found buyers back in the spring of 2011. Resistance seen at 0.40% where we'd close a gap left behind in late October. Daily momentum is mixed.”
“5s (1.30%)- Next major support comes in at 1.80% and just above. Next resistance begins at ~1.30% and extends down to major resistance at 1.15%. Daily momentum is overbought and mixed/aimless.”
“10s (1.835%)-Next resistance comes in some congestion in and around 1.80% then the low yields of 1.64%. Next support comes in ~2.40% with major support at 2.66% after that. Daily momentum is overbought and still mixed.”
“30s (2.445%)- Bonds don't have any solid support until 3.105%, the November "lows." Next resistance around 2.40%. Daily momentum is a mess-almost at overbought levels and looking a bit aimless.”