Benchmark Treasury yield retreat puts key trend support in focus
TLT•The 10-year Treasury yield fell as low as 4.8917% on Friday before rebounding to around 4.95%, extending a decline from its October 7 peak of 5.3645%. Traders are watching the rising 20-week moving average, just above 4.80%, as a key support level.
1. Yield retreats
The 10-year Treasury yield dropped to 4.8917% before rebounding to around 4.95%, below Thursday’s 4.988% close. The retreat extends a pullback that began after the yield reached 5.3645% on October 7.
2. Traders watch support
The yield is below its October 2023 peak near 5.02% and the upper yearly Bollinger Band, around 5.06%-5.07%. Traders are watching the rising 20-week moving average, just above 4.80%, which has provided support during pullbacks in March, April, June and August. A weekly close below it could signal a more meaningful trend shift, while support below it is seen at 4.75%-4.68% and around 4.62%.
3. Market backdrop
The retreat in yields came as investors sought safety following disappointing outlooks from Amazon and Intel, pressuring technology shares. E-mini Nasdaq 100 futures fell more than 2.5%.
