BofA Merrill Lynch notes as follows:Across the curve, we are bullish US Treasuries, targeting the January yield lows (1.150% in 5s, 1.636% in 10s, 2.218% in 30s). The one hold out had been the 2yr point, but the Friday close below 53.5bps/53.2bps (6m trendline and 200d avg) confirms its bullish turn and points to further yield downside to 39.6bps (Jan-26 low) ahead of the confluence of resistance between 36.7bps/35.4bps. Friday also saw 5s30s turn medium-term trend following its daily close above the Jan-20 high at 122.1bps. Upside targets are seen to the confluence of resistance between 138.0bps/143.6bps; potentially as far 160.7bps/167.7bps. Below 117.0bp/113.3bp (100d & Apr-02 low) points to a false break higher and renewed flattening.
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