10-year (June)
Yesterday’s close: Settled at 119’105, down 0’07
Fundamentals: The 10-year Treasury yield traded to 2.998% yesterday and has been all the news to start the week. Still, the 3% benchmark is elusive as the yield has backed off into this morning and supply hits the market with a 2-year auction at noon CT. More technically speaking, price action is trading right into what we have called generational support at 119’00-119’14. The economic calendar brings Case Shiller House Price Index at 8:00 am CT and Consumer Confidence and New Home Sales at 9:00 am CT. The 5-year will be auctioned tomorrow and the 7-year on Thursday.
Technicals: With price action under heavy pressure yesterday, our generational and rare major four-star support held. We have pounded the table on patience when looking to buy this market and now view value in this area as the week unfolds. Traders want to be cautious and must manage risk upon a close above 3% or below 119’00.
Bias: Neutral/Bullish
Resistance: 119’285-120’01**, 120’09**, 120’15-120’17**, 120’24-120’28***
Support: 119’00-119’14****
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