US 10-Year Yield

A quick note about the U.S. 10-year yield: in the past 16 trading days, the yield has moved from 2.26% to 1.82%, a 42 basis point move. If you look at the chart, it sure seems like 1.63% is the point where the downward move meets resistance. At it’s current pace, it could achieve that within 10 trading days.

With the Swiss Central Bank changing policy to allow the Swiss Franc to move independent of the Euro, I expect to see an announcement within a couple of days regarding a large easing program by the European Central Bank. If that is correct, the Euro should fall relative to the dollar and there will be increased trading activity into U.S. Treasuries. If you need a potential story for the continued decrease in the ten-year yield, that seems like a reasonable path.

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Author: dmcnic

Educated as an economist, I now work as an Analytical Professional for a manufacturing firm. I have have a second job as a part-time lecturer at the University of Washington in Bothell. While all baseball interests me, the Mariners are my home town team. Married with one dog.

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