Key support in Treasurys holding

June 11, 2009

Despite momentum toward higher yields, the key support level of 4% on the 10-year Treasury note is still holding after two attempts to break through. A breach of that level could ignite another round of selling with a potential added push from mortgage investors who need to shed long-term securities like Treasurys to hedge their holdings in a rising rate environment. 10-year currently around 3.95%, down slightly from the 3.99% yield paid when the note was reopened Wednesday.

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