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Discuss and Research Stocks 美股美国股票投资交易研究

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Further flattening of the Treasury yield curve may be more challenging, given that the move has stretched toward extreme momentum levels, according to the 14-day relative strength index (RSI). The five-year/10-year curve flattening appears the most acute, at an RSI of 23.3. Outright, only the two-year note has recorded an RSI extreme reaching above 70 following the post-Federal Reserve meeting selloff. This suggests it may be more difficult for the front-end to sell off much further in the short term. The 10-year Treasury yield’s range may hold in the near term, being constrained by a short-term downtrend and the recent lows. Its decline since early May could cap any rise in yields at 1.55%, while near-term support of 1.43% could limit any rally. Below that is the 50% Fibonacci retracement level of the January to March selloff, at 1.38%, followed by the recent yield low of 1.35%.