Yields on the 10-year US treasuries rebounded, but, based on the chart, they could be encountering some mild resistance at 2.96%. As such, the 10-year treasuries yield may ease from current levels, towards 2.70%.
As at Aug 12, the yield curve’s inversion persists, with yields on two-year treasuries remaining stubbornly above 3% and yields on the 10-year treasuries flounders. It appears increasingly likely that the two quarters of mildly negative GDP growth in the US should be viewed as a technical recession. On the other hand, US inflationary pressures have started to abate with the inflation rate easing. In addition, oil prices remain below the psychological US$100 per barrel based on WTI. Whether these alleviations will help to get central banks to pause their rate hike cycle remains to be seen.
