10 YEAR U.S. TREASURY YIELDS

Yields are rising once again putting pressure on the bond market. U.S. 10 year Treasury yield doubled since mid-2012 and now it is close to strong trend resistance between 2.9-3.0 levels. 200-day moving average which is at 2.4 levels is acting as medium/long-term support. Unless 10 year U.S. yield breaks down 2.4 levels in the following weeks we can expect higher prices that could eventually clear the 6 year-long trend line resistance at 3.0 levels. Technical outlook is positive and suggest higher yields in the following weeks/months.

U.S. 5 year treasury note completed a pull back after breaking down strong trend support in the first half of 2013. Unless price moves above 122 levels we should expect lower bond prices in the following weeks. Technical outlook is negative.