In a much-expected moment, the 10-year Treasury note yield
touched the 3% level early Tuesday, which has been closely watched by both bond and stock investors alike.
With that psychological hurdle out of the way, traders and analysts offered up a few of the next bearish milestones the benchmark maturity may pass if it keeps its holds near its recent milestone level. Bond prices fall when yields rise.
Ian Lyngen, head of U.S. rates strategy at BMO Capital Markets highlighted a peak of 3.047% as the imminent support level to monitor. That would see the yield clear the highs seen in January 2014, pushing it to the loftiest levels since 2011.
BMO Capital Markets BMO strategists say a peak of 3.047% is the immediate support level
Beyond that point, Tom di Galoma, managing director of Treasurys trading Seaport Global Securities, said a 76.4% Fibonacci retracement level stood at 3.35% for the 10-year Treasury note, a zone that signals a potential reversal is nigh.
The Fibonacci levels are based on the mathematical ratio of 0.618, also known as the Golden Ratio. Fibonacci followers believe if a charted instrument retraces more than 61.8% of a move, which would come in at 2.98% for the 10-year yield, it becomes a new move, with a minimum target of a full retracement of the previous move.