US: 10-year yields stuck in a five basis point range - BBH

Analysts at BBH note that the US 10-year yield was stuck mostly in a five basis point range last week between 2.32% and 2.37%.   

Key Quotes

“The volatility continues to compress and near 47 bp now (according to the MOVE index, which is like the VIX for Treasuries) it is below the year's average of 58 bp, and near the record low around 43 bp seen earlier this month.   The technical indicators are not generating strong signals, and we suspect short-term participants will go whichever way the narrow 124-28 to 125-04 range breaks.  Ahead of the core PCE deflator on November 30, we would be more inclined to sell rallies in anticipation of acceleration of the targeted measure of inflation.”