German & US 10yr yields topping out and turning bullish

Bunds and US 10yr yields are topping out and turning bullish. While Bund yields have exceeded the expected topping zone at 85.5bps/89.9bps, the daily candlestick indicates trend exhaustion, as both momentum and Elliott Wave analysis say the near-term trend is turning bullish.

In the sessions and weeks ahead, BofAML Research Media look for a corrective pullback and renewed choppy range-bound activity back into the 79.3bps/ 47.2bps range. It is a similar setup in US 10s. The completed Elliott Wave pattern and bullish momentum divergence say that the trend has turned bullish, following the reversal from the 2.366%/2.429% target zone, notes BofAML Research Media. A break below 2.252% confirms, clearing the way for the 200d and year-to-date channel base at 2.161% and 1.960%, respectively.