10-year treasury yields technically look set for a move higher after completing an ABC corrective pattern last week. The overbought status of the stochastic and the RSI indicators also point to a move higher.
The dollar and treasuries will however be at the mercy of the Fed this week.
Weekly candle:
During the whole of the Covid disaster, an historically deep technical shoulder-head-shoulder formation manifested itself. Therefore, I assume that we will see our US10Y between the wide range of 140 and 200 during this summer and or until 2021.
historical low bearish cage - intensive station (if you want) - is still between 0,360 & 1,2760 (march`20 lows)....
Looking at the TVC:US10Y - TVC:US03MY and the AMEX:SPY it seems that during a recession like this TVC:US10Y - TVC:US03MY should rise and AMEX:SPY should fall.
Will it be the case this time as well or is this time different?
Maybe the FED cannot allow TVC:US10Y to rise this time due to the amount of debt and will instead impose yield curve control...
