Yields on 10-year US Treasuries have fallen sharply from as high as 4% in the week of Feb 27-Mar 3 to 3.54% on Mar 16. While 10-year yields have fallen below their 50- and 100-day moving averages, they remain above the 200-day moving average at 3.46%.
The Fear Index or VIX (Chicago Board Options Exchange Volatility Index) has retreated from the twice tested 26 level in the week of Mar 13-17. This may lead to markets heading for calmer waters.
The Straits Times Index ended up five points week-on-week at 3,183 on March 17 after touching an intra-day low of 3,094 on Mar 14. The move establised the 3,100 as support. Resistance is at the flattish 200-day moving average at 3,216 which was breached in the week of March 6-10. At present the STI's rebound is a reaction to oversold lows and unlikely to continue for more than a week.
