10-year US Treasury yields to surge above 1.90% towards November 2019 high of 1.97% – SocGen

The benchmark 10-year US Treasury bond yield continues to fluctuate between 1.75% and 1.8% after the up move has paused after facing resistance near 1.90% last week. However, economists at Société Générale expect to see further upside beyond the 1.90% mark towards the November 2019 peak of 1.97% and projections of 2.13%

A short-term pullback is not ruled out

“10Y UST has so far defended last October/November peaks of 1.69% which is first layer of support. A short-term pullback is not ruled out however neckline of the previous Inverted Head and Shoulders at 1.65%/1.62% should be a crucial level. Holding above this, the up move is expected to persist.” 

“Beyond 1.90%, next objectives are located at November 2019 peak of 1.97% and projections of 2.13%.”