10-year Treasury yields seen up at around 1.36% today
Yields are nearing the double-top just below 1.38% and that is the key technical region to watch as we get things going on the week.
The overall mood in the market has been a quiet one but keep an eye on bonds in case it kicks some life into things as traders stick with the post-NFP narrative.
The move in Treasuries is a bit convoluted given the US jobs report miss but one can argue that the easing of Fed taper expectations could see more durable/lasting inflation be achieved or the simpler explanation being that we have huge supply coming this week.
Either way, the technicals are still the key element to watch in the bond market right now but for the dollar, higher yields aren't necessarily a comfort factor for now.
