10-year US Treasury yields have staged a pullback. The 1.65%/1.62% region is crucial support – removal of which would open up a deeper down move towards the 200-day moving average (DMA) at 1.53%, economists at Société Générale report.
Initial resistance aligns at 1.92%
“It is now gradually drifting towards interim support zone of 1.65%/1.62% representing the neckline of the previous Inverse Head and Shoulders. Defending this zone will be essential to avert a deeper down move.”
“In case the support zone of 1.65%/1.62% gets violated, the ongoing decline could extend towards the 200-DMA at 1.53% and the ascending trend line since 2020 at 1.48%.”
“First resistance is at 1.92%.”
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