Fixed Income

US Treasury yields poised for rally

US Treasury yields look set to rally going forward but German yields continue to struggle, says Chris Williams at Societe Generale. For the US 10-year, 2.69 needs to be breached for further gains but for the 10-yr Bund low volume and the failure of recent rallies means the all-time low of 1.12 may be tested.

More downside for 10-year gilts

The market remains bearish for 10-year gilts after reaching the target of 109.24, says Dmytro Bondar at RBS. However, as prices approach the lower Bollinger band, a bullish correction/consolidation should be expected but this will be followed by the return of downside pressure.

Eurodollar futures: Gut check for shorts

Eurodollar futures still have upside potential to go says Michael Sacchitello at Stone & McCarthy. Last week, The COT report showed large speculator net short bets on 3-month Eurodollar futures at a record 1.56 million contracts, however, potential upside remains from a technical perspective.