📊 The yield on 10-year US bonds has increased by 105% since February of this year. During this time, market participants have paid special attention to the level of 2.74%, that currently acts as the main support. The current trend towards the strengthening of the US dollar would continue to put pressure on the yield on US 10-year bonds and on the economy as a...
Curve Steepening is alive and well as the basis point difference between the US 10-year bonds and the US 2-year bonds reaches its highest level since 2017. This largely due to the Fed purchasing of shorter term bonds every month as part of its QE program to support the economy. Expect this trend to continue as the Fed maintains its support and refrains from...
The chart patterns indicated that the US2Y yield is going to break and stay below 1.500.
The implications are that the spread (or difference) between US10Y minus US2Y is getting smaller. This, in turn, is suggesting reversion or a correction in US Indices towards the mean
You can see the initial chart pattern A, which led to the corresponding drop to point 1,...
