Flash: Technicals hint at rising yields for several years - ANZ

FXstreet.com (Barcelona) - The strong rally in US 10-year Treasury yields, also seen on the Australian Central Government 10-year bond yields, "affirms the formation of a long-term base and now indicates a turn in trend towards rising yields" says Tim Riddell, Head of Global Markets Research at ANZ.

While the upside expansion has been fast and furious and leaves both bond markets at risk of some corrective pullbacks, "the break points - 2.40% and 3.5% in the US and AUD yields respectively - should now act as strong support" Riddell said, who admits that any significant dip "should provide opportunities to position for further rises in yields into Q3 2013."

Riddell adds that from a longer-term technical perspective, it suggest that "the breaches of 2.40% in US yields and 3.50% in ACGB yields signal the initial stages of larger scale uptrends which should continue for several years."