ridethepig
Long

ridethepig | US02Y Market Commentary 2020.02.25

TVC:US02Y   US Government Bonds 2 YR Yield
Play may go as far a 1.115%. A counterattack from FED needed to save Equities... BTFD always wins? Not this time...When major forces on both sides come together, it comes down to a sort of exchange case 1, which we shall call:

"Selling life as expensive as possible"


Buyers play ... Sellers happy to exchange at the resistance line, but since FED is condemned to death, it is quite understandable for those wanting to sell Bonds are the highest price possible. Generally speaking, such a telegraphed move is much stranger to the novice than an experienced:


Virus worries and Japan confirming recession is trigger a move in vol, and it makes the US05Y-US02Y attractive. Treasuries will outperform for the coming months, Equities will remain soft until later in the year.


Hesitant to build full sized positions till we have a technical break as we are aggressively outguessing the next move from FED. As usual thanks for keeping the support coming via likes and comments! Jump in with your charts below!

Comments

Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing Refer a friend House Rules Help Center Website & Broker Solutions Widgets Charting Solutions Lightweight Charting Library Blog & News Twitter
Profile Profile Settings Account and Billing Refer a friend My Support Tickets Help Center Ideas Published Followers Following Private Messages Chat Sign Out