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A look at US T-bills ahead of Nonfarm Payrolls - BBH

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 4, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Guatemala) - Analysts at BBH explained that the March 10-year Treasury note has been recording higher lows since early November.

    Key Quotes:

    "This translated to the cash yield seeing diminishing gains above the 2.30% level. There is a clear near-term downtrend line in the March contract that was traced out in December. It is drawn of the Dec 11 high (127-10), the Dec 21 high (126-24), and the Dec 28 (126-13). It is found near 126-01 on Monday and 125-22 at the end next week. However, the market may be cautious about taking the contract above 127 ahead of the employment report on January 8.

    The March two-year note futures contract finished 2015 on a similar trendline. The technical indicators suggest scope to move back into the 108-24 to 109-00 area. The US two-year yield doubled from 54 bp in mid-October to almost 110 bp on December 29. A pullback was seen at the end of last week and a further move is likely first part of next week, but the participants may be reluctant to push it much lower than 100 bp pending the US employment report."
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