The 10-year Treasury yield may fall further, based on technical charts, UOB’s Global Economics & Markets Research said.

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. However, any further fall will likely encounter solid support at the 55-week exponential moving average, which is currently 3.950%, UOB said.

Above the 55-week EMA, there is another support on the 10-year yield’s rising trend line, which is 4.120%.