As I wrote this morning on Twitter, I have a good reason to show you the yield chart, instead of the FGBL countinous chart this time.
Since we have FGLU7 (Sept contract) maturity next week, and there is a 287 points discount between FGBLZ7 (december) and FGBLU7, the price chart will soon become very distorted both in price and indicators.
Let's see the messages...
Expanding channel breakout confirmed last week
Yield sought support of the channel ceiling earlier this week and now staging a rebound
A break above the previous week's high of 0.58% would open doors for 0.67% (weekly 200-MA).
Sell Euros if the yield breaks below 0.50% levels. Dips to weekly 5-MA likely to be short lived.
The Spread between German Government Bonds 10 YR Yields and France 10 YR Yields actually as high as in the Euro Crisis 2012.
To Yield-Spreads showing ongoing bets against Europe.
If ever the far right or far left parties might not succed all those bets needs to be covered.
The yield looks set to test the expanding channel formation resistance seen around 0.55% as the RSI is yet to hit the overbought territory, although a pull back to 0.393% (Feb 15 high) cannot be ruled out given the loss of bullish momentum as highlighted by the daily MACD.
That's my plan for monetizing a bet on Marine Le Pen :p
(also federal election in Germany in September, possibility of Grexit, hard Brexit and whatever you think may be wrong on the old continent)
This chart is the yield difference between 2y (Schatz) and 10y (Bund) german bonds.
2y outright is trading at -0,83 % annual yield. (This means you have to PAY to Germans if you want to hold their debt for 2 years)
10y outright is at +0,33 % annual yield.
2y/10y spread differential is then +116 bps, (1,16 %). The fundamental reasons we al know. Schatz is trading...
German bond yields are testing weekly kijun. The initial breakout failed and they retraced a bit.I expect this support to hold and yields to reverse from higher from here. Once the reversal is confirmed, i am keep a close eye on bunds for short. They are getting ready for move to the downside imo. No trade for now. Just me thoughts on this chart. I overlayed the...
