Inside Markets — Bond Yield Outlook

We look for 2-year yields to migrate to the 3.84% level in the near-term before testing critical long-term support at 3.52% in the months ahead. Sustained closing levels below 3.475% would mark a critical inflection in the long-term technical pattern.  In 10-year terms, technical support sits in the 4.12%-4.15% range. The 30-year has found significant buying interest at levels just above 5%.  We expect the long bond will trade to 4.71%-4.73% by late-fall.