Forex Flash: US 10-year treasuries overbought? – RBS

FXstreet.com (Barcelona) - The market continues to see a 1.72% to 2.15% range in 10-year US treasuries, perhaps persisting through Q2. According to the RBS Research Team, “Key resistance remains 2.15% in 10-years while near-term support is now 1.80% - our bias remains to modestly lower yields in the medium-term because positioning is favorable and medium term charts are now bullish. Short-term momentum is getting a bit overbought but hasn't rolled yet.

Overnight the focus was on the BoJ, as their aggressive monetary actions spurred a 2.5% weakening in the yen, a 2.2% rally in the Nikkei, and Japanese 10yr yields reach an all time low of 0.446%. Total Treasury inter-dealer broker volume was up a staggering 169% of the 10-day average.