Morning Briefing US 10 Year yield (3.12%) has dipped lower in line with expectation and now has support in the 3.10%-3.05% zone. The US 30 year yield (3.36%) could also have Support near 3.30%. As mentioned yesterday, these supports are likely to hold on first testing and can produce a bounce that lasts up to the FOMC meeting in December, possibly along with a bounce in Brent towards 70 in the near term.
The German-US 10 Year yield spread (-2.72%) could rise towards medium term resistance near -2.65% to -2.60% in the next couple of weeks. A break above this resistance level might just establish the recent low near -2.80% as a possible bottom - hence levels near -2.65% to -2.60% need to be watched - a break above these levels might also indicate chances of bullishness in the German 10 year yield (0.40%) beyond medium term resistance near 0.50%-0.55%. ......Read more