Forex Flash: 10-year US treasuries point lower in near-term – RBS

FXstreet.com (Barcelona) - The market continues to see a 1.72% to 2.15% range in 10-year US treasuries, perhaps persisting through Q2. According to the RBS Research Team, “Key resistance remains 2.15% in 10-years while near-term support is 1.83% - our bias remains to modestly lower yields in the near-term because positioning is favorable (short) and medium-term charts are turning bullish for the first time since early December.”

Treasuries are opening mixed as growth, downgrade and crisis fears still stalk Europe. Bund yields traded at 8-month lows this morning and European swaps spreads have widened (2's +3.75bp, 5's +3.25bp and 10's +2.75bp) as Cyprus reopens their banks. A strong performance in Bunds and weakness in Euribors gave a lift to Treasuries early in European hours and we saw more selling into the uptick: central banks sold 10-years and levered players sold 30-years. Even so, our desk reports that there was 'material' buying in 5-years on the screens despite the fact that all we saw were sellers. Total Treasury inter-dealer broker volume was 113% of the 10-day average through this morning.