Forex Flash: 10-year US Treasuries maintain sideways movement – RBS

According to Analyst John Biggs at RBS, “We continue to see a near-term 1.70% to 2.10% range in 10-year US Treasuries. Key support remains 2.06-2.10% in 10yrs, and first resistance is 1.90%-1.93%. We recommend to watch for ascending bear channel lines (1.93% in 10s and 3.10% in bonds) – breaks through could extend the rally while a close above 2.10% in 10s opens up 2.30%.”

Treasuries initially extended their post-supply rally into the Tokyo session with 10yr yields dipping to 1.975%, but the rally stalled in London time and the market pared its gains. The main news overnight beyond a lot of currency headlines was weaker than expected UK Retail Sales, though European/UK fixed income is only slightly better. We saw a central bank seller of the 7yr sector into the bid and smaller two-way flows otherwise.