Bloomberg News

U.S. 30-Year Bonds May Draw Demand at 3.41%: Technical Analysis

September 28, 2011

Sept. 28 (Bloomberg) -- Thirty-year bonds, the best- performing U.S. government debt this month, will draw buyers as yields rise to 3.41 percent, Daiwa Asset Management Co. said.

“It will be strong resistance,” said Tsutomu Komiya, who helps oversee the equivalent of $120.9 billion as an investor at Daiwa Asset in Tokyo.

A Fibonacci graph shows the level is a 61.8 percent retracement of a surge in yields from a record low of 2.51 percent in December 2008 to a peak of 4.86 percent in April 2010. Rates touched 2.74 percent on Sept. 23, the lowest since January 2009.

Yields fell a basis point to 3.06 percent today as of 8:40 a.m. in London, according to Bloomberg Bond Trader prices. The 3.75 percent security due in August 2041 rose 3/32, or 94 cents per $1,000 face amount, to 113 11/32.

Thirty-year Treasuries have returned 9.4 percent this month, according, based on Bank of America Merrill Lynch data. Ten-year notes gained 2 percent and two-year securities were little changed, based on prices and interest payments, the figures show.

Fibonacci analysis is based on a series of numbers developed by 13th-century mathematician Leonardo da Pisa, known as Fibonacci, who was studying growth rates. Analysts use the numbers to determine levels where buy and sell orders may be set.

In technical analysis, investors and analysts study charts of trading patterns and prices to forecast changes in a security, commodity, currency or index.

--Editors: Nate Hosoda, Jonathan Annells

To contact the reporter on this story: Wes Goodman in Singapore at

To contact the editor responsible for this story: Rocky Swift at

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