With a larger yield top now threatening in the US 10-year Bond Yield, economists at Credit Suisse downgrade their tactical objective further to 3.045/00%.

10yr US Bond Yields to confirm a large top on a  break below 3.56% 

“10yr US Bond Yields need to break below 3.56% to confirm a larger top. Of course, Nonfarm Payrolls data represents a key event risk, however, short-term momentum continues to accelerate to the downside, suggesting a break is more likely than not.”

“Even if yields were to rebound from current levels on an upside NFP surprise, the completion of a larger top would still be our base case, as long as the market holds below support at 4.00/03%.” 

“Assuming the top is confirmed, the potential ‘measured top objective’ suggests a move below 3.00% is possible, however, the rising 200-Day Average at 3.045% should provide a formidable barrier beforehand.”

See – US NFP Preview: Forecasts from 10 major banks, less strong, but not weak