Flash: 10-year US treasuries offer nice buys long-term – RBS

FXstreet.com (New York) - According to the RBS Research Team, “The odds favor a September start to Fed tapering, with the burden of proof on the data to prove otherwise. Our read after the Fed was that 10-years were likely to test towards key 2.40% support between now and payrolls, but we have already broken it.”

In addition, we favored covering shorts at the close yesterday but have not moved to buy recommendations and still have not. “We like the market long term and 2.40% support is key (watch the close), but its overnight breaking and the fact that the charts are not yet oversold, positions still need to be flushed (and are not yet short), and sentiment is not quite extreme makes us wait. Wait for daily momentum to cross bullishly and weekly momentum to get a bit more oversold and let this one play out.” the team recommends.