Change in outlook for US yields

George Davis, Chief FIC Technical Analyst at RBC Capital Markets, has shifted his outlook from bearish to neutral for US 10-year yields.

Davis argues that recent market turmoil and volatility has caused him to change his 1 to 3 month view. For US 10-year yields, he says the market is back within a neutral, well-defined 2.09 to 2.50 trading range.

Davies says we must pierce support at 2.22 to sustain the recent uptrend, which would expose the 2.29 to 2.32 area next.

See chart.