Yields want to go higher, ZN price lower -> consequences
Why is the USD gaining some strength? Why are metals being hit and breaking their bullish trends? Probably because rates want to go higher from here. In terms of $ZN futures it obviously means lower price.
Clearly US rate expectations and bond curve movements lead global Fixed Income markets. Any big QE the other central banks can promise, if US yields go up, global yields can not really go down. (one reason among all, that supports my bearish view on Bund and BTP).
There can be one more important consequence of rising yields: global risk asset repricing. If we call global bond markets a bubble, whyt will happen to EM world and developed stock markets if yields really go up. By this I don1t mean 5-10-20 bps surge... more like 75-150 bps bond blow ups on mid and long end of the bond curves. Just thinking laud.
My view is the same as it has been for months: the huge and historically unprecedented bubble is in the bond markets! Therefor first short the bond markets, and only later can we get bearish for stocks.
$ZN Technicals:
All bearish, or bearish-like signals are marked on the weekly and daily charts with ellipses. Possible bearish tgt is 129+
Clearly US rate expectations and bond curve movements lead global Fixed Income markets. Any big QE the other central banks can promise, if US yields go up, global yields can not really go down. (one reason among all, that supports my bearish view on Bund and BTP).
There can be one more important consequence of rising yields: global risk asset repricing. If we call global bond markets a bubble, whyt will happen to EM world and developed stock markets if yields really go up. By this I don1t mean 5-10-20 bps surge... more like 75-150 bps bond blow ups on mid and long end of the bond curves. Just thinking laud.
My view is the same as it has been for months: the huge and historically unprecedented bubble is in the bond markets! Therefor first short the bond markets, and only later can we get bearish for stocks.
$ZN Technicals:
All bearish, or bearish-like signals are marked on the weekly and daily charts with ellipses. Possible bearish tgt is 129+
