Benchmark 10-year yields may climb to 2.292 percent in the weeks ahead and potentially reach 2012’s high of about 2.4 percent, MacNeil Curry, a technical strategist for the company in New York, wrote in a note yesterday. Rates may rise after breaking through 2.151 percent, the level that results by drawing a trend line connecting recent highs in yields and extrapolating it out to today, according to the report.
Ten-year yields rose one basis point today to 2.12 percent as of 2 p.m. in Tokyo, based on Bloomberg Bond Trader prices. The 1.75 percent note due in May 2023 fell 1/32, or 31 cents per $1,000 face amount, to 96 22/32. Rates reached 2.23 percent on May 29, the highest level since April 2012. A basis point is 0.01 percentage point.
“We look for the selloff to continue,” Curry wrote.
Five-year yields may rise to 1.182 percent from 1.02 percent today, and 30-year rates may climb to 3.461 percent from 3.26, according to the report.
In technical analysis, investors and analysts study charts of trading patterns and prices to forecast changes in a security, commodity, currency or index.
To contact the reporter on this story: Kenneth Foo in Singapore at kfoo23@bloomberg.net
To contact the editor responsible for this story: Rocky Swift at rswift5@bloomberg.net