US 10-year yields: New range highs with limited relief – Societe Generale

Societe Generale’s Kenneth Broux describes a difficult week for global bonds as rising Oil prices deter duration buying. US Treasuries and Bunds have repeatedly broken into higher yield ranges, with next US 10-year projections at 5.24% and 5.36% and Bund at 3.70%/3.74%. Relief may hinge on month/quarter-end rebalancing and upcoming US PCE and Eurozone CPI data.

Treasury yields eye higher projections

"For Treasuries but also Bunds, yields have stepped up and crossed into three new trading ranges in quick succession in September alone, scaling new cycle highs at every occasion."

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"Levels are technically stretched but there is no incentive to snap up debt at discounted prices until the pattern breaks down."

"Next projections for US 10s are located around 5.24% and 5.36% and for 10y Bund at 3.70%/3.74%."

"Inflation data in the US and the euro zone will keep investors on alert in the coming days."

"Any relief may depend on month and quarter end portfolio rebalancing (benchmark duration extension)."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)