US 10-year yields hit the highest since March
The break above 0.80% in ten-year Treasury yields is confirmation of what we're seeing in the broader market. The re-opening theme is in full swing now.
This is what BMO is looking for next:
While we've been on about the importance of 78 bp, a break there need not portend a more dramatic repricing as there are several technical levels of note not far beyond the top of the range. First is the 74-day moving average of 80.2 bp which is immediately close by, and through there we would target a local yield high at 89.1 bp before the implications of the psychological hurdle of 1% would once again become relevant. The break of the upper Bollinger band at 74.1 bp on Wednesday also lessens that particular indicator's significance. Momentum favors a greater selloff as stochastics have crossed in the middle of the range with ample room to run before oversold conditions would impede a greater repricing
