High yield in October extended to 2.47%The 10 year yield has moved up to 2.40%. Recall, that was a key level in October. The move above took out swing highs from July and early October. The peak last month moved to 2.47% before the rotation back lower.
Last week, the 10 year yield toyed with breaking below the 200 day MA at 2.307% area. There were two peaks below the level, but momentum stalled. On Thursday and Friday, the yield moved higher — with Friday’s move closing at 2.394%. Now we are trying to extend the yield above that level and close above the 2.40% level once again.
The low yield today reached 2.368% before moving back higher.
The rise in yield is helping to give some support to the USDJPY.
That pair trades at 113.64 and in the process is back above the 100 hour MA at 113.58 and a topside trend line on the hourly chart below. Earlier today (when yields were lower), the pair moved above those technical levels, but stalled and rotated back higher. Now, there is the support from higher rates. We will see if the momentum can continue and pick up. Buyers in control.