September 10yr support and resistance
The 10yr has been on a tear as evidence of a weakening U.S. economy and weak U.S. equity markets pull money market and safe haven buying. 10yr resistance is up at 116-01 and the market is well-supported at 115-12, the 2/3rds retracement of the February to June sell-off. Intermittent gains in the equity markets have pulled some selling in the 10yr but the issue has bounced back strongly on equity routes. There is some speculation in the market that the dollar and treasuries are now favored by fast money flows; that seems incongruous but the separate notions of safe-haven buying in Treasuries and and Oil-linked dollar rally works.