Quotes from BofA Merrill Lynch:
- US 10yr yields have turned medium term bearish. The break of 2.150% (the Dec-01 low) says that the trend has turned bearish, pointing to further yield gains in the weeks and months to come.
- Initial upside targets are seen to 2.341%/2.441% (200d and trendline support), through which targets 2.66%/2.82% and potentially beyond.
- Now, in the immediate term, signs of short term exhaustion point to a temporary yield pullback into 1.953%/1.840% before basing and a resumption of the larger bear trend. Bears should wait for these levels before initiating shorts.