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Traders buy dips as 10-year yields test the 4.75% ceiling

U.S. 10-year yields reached 4.748% before the open and then ended the session flat, after earlier tests of 4.75% in August.

Reported · Written up by our desk · Inflation

Mortgage News Daily reports that for nearly 10 months, market momentum has leaned toward higher yields, with several pauses and failed attempts to bounce off technical “ceilings” as the 10-year yield climbed from about 4.0% to new highs. It notes past ceiling tests around 4.3%, 4.42%, and 4.75%.

The outlet says August has been mostly rangebound near longer-term highs, but the first two days of the week set up another challenge at the 4.75% level. It frames the pullback as a “dip buying” response, tied to a longer-running investor view that yields can reach a point where they look attractive enough to buy.

Mortgage News Daily adds that, as of the update, bonds were back to unchanged after 10-year yields touched 4.748% before the open. It concludes there was no clear alternative explanation for the recovery besides dip buying.

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