10-year Treasury yields down a little today to 1.338%
The double-bottom bounce in 10-year Treasury yields is still holding and even the slight dip following the US CPI report on Wednesday has been largely pared back.
Bond sellers are playing their part in keeping yields above 1.30% and the 200-day moving average (purple line) for now but there seems to be a lack of any firm conviction to keep going in the past few sessions.
Broader markets are still caught in a debate between Fed taper expectations (with a growing anticipation ahead of Jackson Hole later this month) and delta variant concerns, and bond traders are no exception to that tussle.
As yields keep more tentative towards the end of the week, it isn't offering much for FX to work with as the dollar also stands its ground but not really chasing any firm directional moves for the time being. The summer lull in Europe also isn't helping in that regard.
It seems like bond sellers are waiting for the next catalyst to give things a push but it is doubtful that we'll get one before the weekend.
But keep above the technical levels pointed out above, and yields are still in a favourable spot to keep higher for the time being at least.