The range 10-Yr Tsys have been trading in...>

US TSYS: The range 10-Yr Tsys have been trading in since end-March looks like

it's being broken to the upside. We've seen a high of 0.8135% today, the highest

level since March 27. Parameters for the recent range had been 0.7834% high on

April 9, 0.5394% April 21 low.

- TYs have traded as low as 137-23 today; this morning our tech analyst saw

137-30+ (Low May 6) as key support, a break of which suggests a move to 137-19+;

beyond that, 136-20 (which corresponds to the Mar 25 low).

- Nomura wrote this week they expect CTAs who are slightly net long "will hold

tight in their positioning in UST futures (TY) unless they see the 10yr UST

yield break above 0.84% or so.". A recent note by Citi suggested that 0.69%

implied (138-26 TY) was the line in the sand for CTAs.