The bond market returns to focus as Treasury yields near key level

<p>The drop in yields yesterday was definitely a bummer for the dollar, coming off the back of 2-year notes auction yesterday <a href="https://www.forexlive.com/news/us-treasury-auctioned-off-54-billion-of-2-year-notes-at-a-high-yield-of-4887-20231127/" target="_blank" rel="follow">here</a>. For today, there will be a 7-year notes auction to watch out for as well. With that in mind, the key thing to be wary about in the bond market now is that 10-year yields are coming close to testing its 100-day moving average once again:</p><figure data-media-><img src="https://images.forexlive.com/images/US10Y_id_d38df24a-2793-4e18-a5e0-47aad2c77018_size900.jpg" width="1271" height="715" wrapper-="wrapper-" data-src="https://images.forexlive.com/images/US10Y_id_d38df24a-2793-4e18-a5e0-47aad2c77018_size900.jpg" /><figcaption><div>US Treasury 10-year yields (%) daily chart</div></figcaption></figure><p>This was the level mentioned here yesterday:&nbsp;<a href="https://www.forexlive.com/news/the-real-test-for-the-bond-bond-market-can-now-begin-20231127/" target="_blank" rel="follow">The real test for the bond bond market can now begin</a></p><p>Amid the quieter and more mixed start to the new week, this is where things could really kick off and we see a broader and more sweeping move across asset classes.</p><p><br></p>

This article was written by Justin Low at www.forexlive.com.