Yield curve steepening

The US treasury will auction off $58 billion ofthree year notes, $41 billion of 10 year and $27 billion of space30 year issues this week. Yields were lower earlier in the day, but have backed up a bit and it could be in reaction to positioning ahead of the supply to come.

Looking at they Highs and lows and changes, the 10 year is currently trading at 1.597%. That is just below the high of 1.602%. The low yield today was at 1.558%

The thirty-year is at 2.316%, up 3.9 bassis points. That is the high yield for the day. The low was at 2.271%.

Yield curve steepening

Taking a look at the 10 year yield chart below, the high yields from earlier in the day stalled against its 200 hour moving average currently at 1.604%. The yield is moving back toward that key moving average level.

The low yield for the day also stalled against a technical level. It fell toward the 38.2% retracement at 1.561% and found interest at that yield level.

10 year yield

A break above the 200 hour moving average 1.604% should tilt the buyers more to the upside in yields (lower prices).