LIVE MARKETS-Benchmark Treasury yield pitching down toward the Cloud

ReutersApr 17, 2025 1:01 PM

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U.S. 10-Year Treasury yield ~flat at ~4.28%

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BENCHMARK TREASURY YIELD PITCHING DOWN TOWARD THE CLOUD

U.S. Treasury yields fell on Wednesday after comments from Federal Reserve Chair Jerome Powell stoked concerns about economic growth and inflation pressures.

Powell said U.S. economic growth appears to be slowing, with consumer spending growing modestly and a rush of imports to avoid tariffs likely to weigh on estimates of gross domestic product and sentiment.

In addition, Powell said the tariffs announced by U.S. President Donald Trump were larger than even the highest estimates prepared by the Federal Reserve ahead of time.

The U.S. 10-year Treasury yield US10YT=RR fell for a third day in a row on Wednesday, hitting 4.263%, before ending at 4.279%. On Thursday, the yield is now around flat:

Traders are watching support at the upper boundary of the weekly Ichimoku Cloud, which now resides around 4.26%.

Of note, however, the upper boundary of the weekly Cloud is poised to fall to around 4.16% next week, which may act as a magnet, continuing to drag the yield lower for now.

The lower Cloud boundary, which is now around 4.03%, is poised to rise to around 4.06% next week.

Thus, looking ahead into next week, traders will be watching to see if the 4.16%-4.06% area contains the pullback. Bouncing off the Cloud can keep the yield focused on the upside with this month's high at 4.592% and the mid-February high at 4.66%. The weekly resistance line from the October 2023 peak is now around 4.77%.

Falling below what will be the thinning weekly Cloud can see the yield pressure the early April low at 3.86% and the support line from April 2023 trough, which is now around 3.74%.

(Terence Gabriel)

FOR THURSDAY'S EARLIER LIVE MARKETS POSTS:

UTILITIES NOT IMMUNE FROM GROWTH SLOWDOWN - CLICK HERE

THE CASE FOR A RETURN TO US OUTPERFORMANCE - CLICK HERE

STOXX 600 SOFT, LUXURY IN FOCUS - CLICK HERE

EUROPE BEFORE THE BELL: CAUTIOUS START BEFORE ECB - CLICK HERE

NO SURPRISE AT JAPAN TALKS, EXCEPT TRUMP - CLICK HERE

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