10-year Treasury yields are down around 3 bps to 4.097% on the day as yields are keeping lower ahead of European trading. The week has been exemplified by a push and pull mood with the high having touched 4.192% and the low being 4.075% on Monday. As you can see, we’re much closer to the latter now.
US Treasury 10-year yields (%) daily chart
From the chart above, it seems like bond sellers are struggling to take things to the next level this week. A break above the 200-day moving average (blue line) was encouraging but there is a lack of follow through. And that is bringing us back to the key level now, seen at 4.102% today.
Hold above and the break higher in yields will stay supported somewhat. However, break back below and that could see the correction to start the year perhaps run out of steam.
What happens here will also have implications for broader markets, in particular the dollar. The greenback has been rather resilient as of late but is also trading rather choppily this week. If anything, that is a reflection to the push and pull mood in 10-year Treasury yields.
As such, the technical challenge above for the bond market is also one that dollar traders have to be mindful about for the time being.