Archived IMT (2009.03.11)

Watch the US 10-year yield as it probes 3.06% resistance (highest since Nov), a break of which could call up the 3.30% target (March 2008 low) and 61.8% retracement of latest downleg. I reiterate that only supply concerns (excessive US borrowing) are behind rising bond yields (rather than inflation or growth). Todays 10-year auction may be well subscribed, which could only serve as a fresh selling opportunity, before prolonged losses (in price).