US 10-year yields higher again today

Back to the 1.25% area

The big question is whether yesterday's drop and reversal is the bottom in yields or a bounce. Today's follow through is positive for risk trades and you can see that unfolding in GBP and CAD at the moment; two currencies that have been tightly aligned with risk trades and are at the highs of the day.

Technically, we're near the levels where you would expect a bounce to fizzle. We're testing the early-July low in yields, which is now resistance. In the bigger picture, I think we need to get above 1.44% to believe in higher yields again while 1.30% would be a shorter-term marker.

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July 22, 2021 at 01:05AM
Adam Button
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