Strategists at Canadian Imperial Bank of Commerce believe that 10-year Treasury yields may decrease to 3% by the end of 2010 as the technical analysis shows that US debt has been oversold.

Yesterday the rate climbed to 3.49% overcoming the 61.8% retracement of the decline from April maximum at 4% to 2.33% minimum hit on October 8. Then American yields may get back retesting 61.8% retracement to form a double-top.

The yield’s 14-day RSI (relative strength index) was at 73 that’s above the key 70 level regarded as the signal of trend’s reversal.

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