A perfect Channel Down has been formed for the US10Y on the 1D time-frame. The 1D MA50 and 1D MA100 have already been broken. The 1D MA150 (yellow trend-line) is exactly within the Higher Lows Zone from the very bottom of August 2020. Will the 1D MA200 (orange trend-line) get tested right on the 0.382 Fibonacci retracement level?
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Or its a bull flag.
For the US economy to recover the rates have to rise, they are at historic low levels in terms of real yields (remain negative). Investors won't be happy to accept these returns when life returns to normal.
The Fed has signalled a more hawkish tone and the market is waiting for the Fed to signal tapering, which will start to reduce the amount of money in the US.
At the moment the market is awash with money and it has to go somewhere, so for now it is going into bonds.
BTW Bond traders trade on fundamentals not on MA's and Fibs.
heavy_assault
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this bond market bubble has to pop some time in the future. yields to 5% when it does.
For the US economy to recover the rates have to rise, they are at historic low levels in terms of real yields (remain negative). Investors won't be happy to accept these returns when life returns to normal.
The Fed has signalled a more hawkish tone and the market is waiting for the Fed to signal tapering, which will start to reduce the amount of money in the US.
At the moment the market is awash with money and it has to go somewhere, so for now it is going into bonds.
BTW Bond traders trade on fundamentals not on MA's and Fibs.