US 10-year yield dropped sharply overnight as concerns surfaced over the passage of President Joe Biden’s USD 1.9T pandemic relief proposal in Congress. Senate majority Leader Chuck Schumer would try to push through some measures in early February. But a comprehensive deal may be four to six weeks away. But he admitted, “will it be easy in the Senate? No”.
Democrats only have slim 50-50 control in the Senate thanks to Vice President Kamala Harris’ tie-breaking vote. Opposition to the bill was voiced by some moderate Republicans and some Democrats.
10-year yield closed down -0.051 to 1.040. The rejection by near term channel resistance is now clear. TNX will likely pull back to wards channel support, which is close to 55 day EMA at 0.9581. Nevertheless, there is no threat to the up trend yet as long as the channel holds. Another rise towards 1.266 resistance is still in favor at a later stage.
