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Bond of the Week: 28 April 2016
Bearish key by US 2yr Bond Yield

The US 2-year Bond Yield has plotted a 'Peak' Key Day Reversal from 0.8747%. The downward dynamic has probably checked the short-term rally. A sustained push past that ceiling would be required to remove risk of a further retracement back towards the early-April floor near 0.7%. 

US - The Eurodollar future encountered firm intraday support at 99.265 on 27 April. The rebound from that level has reasserted the advance from the 'Trough' Key Day Reversal low of 16 March, which arrived at the 200-day MA. Resistance is at the early-April high at 99.33, though the stronger barrier is not until the February peak at 99.39.

UK - The Long Gilt contract broke under the March low to complete short-term top during the course of the week. One notes that the decline has since slowed slightly, having reached the 200-day MA. However, a stronger up move is required to reaffirm new support in this area around 119.

Europe - There is a slight loss of momentum to the 'bull trap' pullback that followed the failed break over the prior high near 164 by the Euro 10-year Bund issue. The price has approached prior support at the March floor, at 160.81. Should that yield, the chart pattern will look rather top heavy.

Asia - Once again, the JGB future has failed to maintain the nudge to a new high. The ensuing 'bull trap' pullback is probing support at the 50-day MA. A breach will have the early-April low around 151 as the next chart target. Also, the pattern would take on a top heavy aspect.

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