0738 GMT – Greek government bonds are expected to continue to benefit from good investor interest after Fitch Ratings upgraded Greece to investment grade in a widely anticipated move on Friday, although most of the support should be in the price by now, Rainer Guntermann, rates strategist at Commerzbank Research, says in a note. “Greece should enjoy further rating tailwinds after the IG thumb up from Fitch,” he says. “This paves the way for Greece to rejoin major sovereign bond indices in January, such as the iBoxx or the Bloomberg Barclays Euro Sovereign indices,” he says. The 10-year Greek government bond yield is trading 1 basis point lower at 3.586, while the 10-year German Bund yield is down less than 1 basis point at 2.361%, according to Tradeweb. ([email protected])

U.S. 10-Year Treasury Yield May Fall Further, Charts Show

0734 GMT — The U.S. 10-year Treasury yield may fall further, based on technical charts, Quek Ser Leang, markets strategist at UOB’s Global Economics & Markets Research, says in a report. The pace and extent of the 10-year yield’s decline over the past month has exceeded UOB’s expectations, and the 10-year yield could continue to drop over the next two months, the strategist says. However, any further fall will likely encounter solid support at the 55-week exponential moving average, which is currently 3.950%, the strategist says. Above the 55-week EMA, there is another support on the 10-year yield’s rising trend line, which is 4.120%, the strategist adds. The 10-year Treasury yield is up 1 bps at 4.2347%. ([email protected])