U.S. T-bond & T-note Yield

[PCMNewsdesk]

30 year U.S. T-bond Yield analysis will be inserted here.

[Yousuf Ali]

The US Treasury curve is between 7 and 10 bps lower than two days ago in the belly and the 10 year yields is trading at 2.5763%, the lowest in almost two weeks and below the 50-day MA.

Given the way equities have retraced to the Fed meeting, one would have to conclude that these UST yields levels have very little to do with risk aversion triggered by middle east turmoil and most to do with the Mrs. Yellen et al

In hindsight, Revisiting the statement and the press conference would eventfully lead the market to see the Fed under a more balanced light than the dovish interpretation on which trading appears to be running right now.

Therefore, the USD will regain some ground in the coming days as UST yields – in the belly, in particular – bounce above current levels to test the upper bound of their recent ranges. This would mean an extension of the push higher in EURUSD to the mid/upper 1.36 area should be a good opportunity to reset shorts, as we have recently noted.