UK 10yr Gilts: Consolidation ends

This report only covers the 10-yr Gilts. For a full review of the yields on 2/10/30 year, please visit this page (new window)


Sellers are gunning for a move below 122.75, thus ending the recent consolidation phase and resuming the longer term bear market for Gilts. Note that a similar development is visible in Germany and the Netherlands. Spain and Italy are already ahead…

Renewed short-entries (or expanding existing shorts) is justifiable now that the near-term and longer term bearish outlook is in harmony again. Our main target comes in at 116.82 (6-month+ horizon).

  • Primary trend: negative
  • Outlook: negative
  • Strategy: hold short / short-entry
  • Support: 116.82* / 108.90
  • Resistance: 123.77 / 124.65 / 125.10+
  • Outlook cancelled/neutralized: above 124.65

Daily chart UK 10-year Gilts

18 May 2018 – More downside potential

The first minor projection has been reached at 121.72. Trend velocity remains high enough to maintain our bearish stance; focus is still on the major projections at 116.82 and 108.90 on a 9-12 month horizon. Note that the latter level is virtually equal to multiple pivots of 2013-2014.

  • Primary trend: negative
  • Outlook: negative
  • Strategy: hold short / short-entry
  • Support: 121.72 / 116.82* / 108.90
  • Resistance: 123.30 / 124.65 / 125.10+
  • Outlook cancelled/neutralized: above 124.65

Weekly chart UK 10-year Gilts