And natural support at the 2.00% area.
The 10 year yield traded to the level since Septembe 8, 2017. The low yield for the day reached 2.0517%.
Technically, the note is starting to test a key support area defined by the:
- 61.8% retracement of the move up from the July 2016 low yield at 2.0596%
- Swing low from September 8 at 2.0144%
- Natural support level at the 2.00%.
The yield has bounced off the low as traders take some profits against the risk defining level. We currently trade at 2.0844%, down -3.3 bps on the day.
Drilling to the hourly chart below, the low today took out the low from Monday at 2.0590%. The day started above the 100 hour MA (blue line) at 2.1096%. A move back above that MA (a trend line is also near the level) will be eyed by traders looking for more confirmation that a temporary bottom is in place. Above the 100 hour MA, and traders will be eyeing the 2.1452% high for the week, and the falling 200 hour MA at 2.1739%. Those levels should give traders cause for pause as traders ponder the Fed (and other macro trends).