Treasury yields also suffered with the selloff in stocks. 10 year yield lost -0.009 to close at 2.732. 30 year yield lost -0.002 to 2.970. The moves were relatively insignificant. But they are solidifying recent near term reversal.
10 year yield (TNX) formed a short term top at 2.943, ahead of 3.000 handle. The correction from there is still in progress. Now it could be finally getting rid of 55 day EMA. Further decline should be seen to 38.2% retracement of 2.033 to 2.943 at 2.595. For now, we’re not seeing a reversal of the medium term trend from 2016 low at 1.336. Hence, we’d expect support from 2.595 to bring rebound, at least on first attempt.
30 year yield’s reversal from 3.221, after failing to sustain above 3.201 resistance, suggests that it’s extending sideway range trading. For now, further decline would likely be seen to 61.8% retracement of 2.651 to 3.221 at 2.868 and below. But we’d expect strong support as TYX approaches 2.651 to bring rebound.
