Forex Flash: 10-year US treasuries point to lower near-term outlook – RBS

FXstreet.com (Barcelona) - The market continues to see a 1.70-2.13% range in 10-year US Treasuries. According to the RBS Research Team, “Key resistance remains at 2.15% in 10-years, while near term resistance is 1.80%; a break through here should see extension to 1.70%. Momentum measures are looking better for bonds with short-term work now bullish and intermediate term studies (weeklies) are oversold and trying to turn bullishly as well – our bias remains to lower yields near-term.”

Indeed, treasuries have rebounded after two days of relatively heavy losses and despite a drag from Gilts after mildly hawkish MPC Minutes. Markets will likely sit tight until the Fed releases its policy statements at 2:00PM EST with the Chairman's press conference starting just after at 2:30pm. Total Treasury inter-dealer broker volume was 81% of the 10-day average through this morning.