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The Monthly Banker: 5 September 2014
Euro 10yr Bond Yield bounces

The Euro 10-year Bond Yieldhas launched a counter move up this week.  The RSI had been indicating that the previous decline was oversold; as the yield bounced off the record low, at 0.866%.  The chart shows that the 50-day moving average has turned back all recovery attempts for most of the year, so far.  That line is currently situated near 1.09%.

N.B.  The ECB has cut its benchmark interest rate from 0.15% to 0.05% today. 



Weekly Comment:


Government Bond Futures 


US - The 30-year Treasury Bond has reacted this week.  This was to be expected as the advance had become overbought (see recent high level of the RSI).  However, a sustained fall beneath the 50-day moving average is required to question uptrend consistency.


UK - Gilt futures are similarly unwinding from an overbought condition.  Prior resistance along 112 has the capacity to convert into support.  The shorter-term MA line is located close by, and may also offer a lift.


Europe - The overbought rally for the Euro 5-year Bobl instrument displays a loss of momentum.  Still, a breach of the 50-day MA is required to interrupt the upward tendency.


Asia - The Australian 10-year Bond has retreated from last month's high and challenges the uptrend channel at the 50-day MA.  A sustained fall beneath that line would lend the pattern a top heavy aspect.

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