Forex Flash: 10-year US treasuries continue to trade sideways – RBS

FXstreet.com (Barcelona) - The market continues to see a 1.75% to 2.15% trading range in 10-year US Treasuries Thursday. According to the RBS Research Team, “Key resistance remains 2.15% in 10-years, while near term support is at 1.83%. Our bias remains to modestly lower yields in the near-term, though confidence in our abilities to call even minor moves in this environment is ebbing as the dominant rate trend remains sideways.”

Treasuries have extended yesterday's losses a bit this morning as China's PMI showed a 5th month of expansion and UK retail sales came in much stronger than expected. In European hours our flows picked up (from nothing) and we saw leveraged and spec selling in 10-years and 30-years along with levered buying in 5-years. Total Treasury inter-dealer broker volume was 99% of the 10-day average through this morning.