collapse of the British bond market?This chart shows the British debt 10 year yield. There has been a break of a 42 year long down trend in UK government bond yields. The Bank of England may be forced to defend the pound from a collapse against the dollar and to at least try to get interest rates to match up with yields. All in all this looks very dangerous for the British economy.
Trade ideas
GBP-USDIn the chart, you can see in blue GBP-USD and in black the yield differential of the UK and US 10-year bonds.
Usually, the two lines are correlated; whenever this correlation has been lost, it has always been GBP-USD that has realigned with the yield differential (as evidenced in 2020 and as was also the case at the turn of 2018).
Now a new divergence has formed. It is not certain that GBP-USD will start to rise from today, but sooner or later it will realign, as it has done in the past, with the yield differential.
UK 10 Year Bond Europe Sun Storm Investment Trading Desk & NexGen Wealth Management Service Present's: SSITD & NexGen Portfolio of the Week Series
Focus: Worldwide
By Sun Storm Investment Research & NexGen Wealth Management Service
A Profit & Solutions Strategy & Research
Trading | Investment | Stocks | ETF | Mutual Funds | Crypto | Bonds | Options | Dividend | Futures |
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Disclaimer: Sun Storm Investment and NexGen are not registered financial advisors, so please do your own research before trading & investing anything. This is information is for only research purposes not for actual trading & investing decision.
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UK 10 Years Government Bond Europe Sun Storm Investment Trading Desk & NexGen Wealth Management Service Present's: SSITD & NexGen Portfolio of the Week Series
Focus: Worldwide
By Sun Storm Investment Research & NexGen Wealth Management Service
A Profit & Solutions Strategy & Research
Trading | Investment | Stocks | ETF | Mutual Funds | Crypto | Bonds | Options | Dividend | Futures |
USA | Canada | UK | Germany | France | Italy | Rest of Europe | Mexico | India
Disclaimer: Sun Storm Investment and NexGen are not registered financial advisors, so please do your own research before trading & investing anything. This is information is for only research purposes not for actual trading & investing decision.
#debadipb #profitsolutions
ridethepig | Gilt Yields Breaking the GridlockThe best move, since the breakout of the consolidation after an early basing development is to work the heat of the bid. It is much more about the political configuration than and how to work against the economic pain coming from Brexit.
As well as moves in Pound and UK Equities becoming clear, Rishi Sunak now playing the tax cuts, which combined with the overdraft extensions and BOE front loaded cuts allows us to completely paralyse sterling buyers in the majority. The latest squeeze is a false liberation!! It will only manage to create enough energy for further weakness !! The isolated Pound will fall and go on to occupy the lows once more, we can open a new cable chart for those wanting to trade the flows live.
By calling to their aid the tax cuts, Yields will be forced to spike into the highs and force our opponent onto the back-foot. If price escapes the highs in a freeing momentum break, we can see a surplus of tempo once inflation hits shore. This demonstrates how deadly the paralysing of Downing Street was from Cameron.
UK 10-YEAR YIELD - new lows aheadGB10Y seems to be tracing intermediate wave 3 down of primary wave 5. The resistance for this scenario would be at 1.058, if this level is crossed up primary wave 5 has already finished and yields should be in an upward move. Another critical level is at 0.072, if this level is crossed down yields should go a longer move down. FOLLOW SKYLINEPRO TO GET UPDATES.
UK government ten-year yield bonds on a free fall down -31.84%The UK government ten-year bonds continued its downtrend in the daily price chart, pushing prices further down below its previous lows at 0.365 and finished the last session of the week at 0.22 down -31.84%. Prices have been sliding since falling below 0.610 support line reaching another support level in Friday's session at around 0.193.
Bond prices could continue down to -0.025 if it fails to hold at its current support level at 0.193. Bond prices could also return to its previous level at 0.365 and 0.446 if it stays above 0.193
Heads Up...Tax Cuts Coming In UK !!!Important updates on the UK side for those in UK related assets. A game changer cabinet reshuffle to put a 🍒 picked “Yes man” in the Treasury. Downing Street making renovations and now in full control of not only No.10 but also No.11 (and scarily soon to be the BOE next month).
Sunak will turn the fiscal taps on full blast, the fuel behind fiscal stimulus will come from fresh tax cuts in the UK ...Clean and simple legs available in the 2s10s, as markets begin to expect a looser fiscal policy a test of the Nov highs are in play.
We will need to update the GBP macro charts over the coming sessions once we have confirmation in the headlines. Remember inversions in the US 2s5s setting the stage for recession...
We traded the inversion here live in the UK:
In any case, plenty of opportunities to discuss and in single stocks too. Smelling a major hammer to the UK economy coming at the end of 2020. As usual thanks for keeping the support coming with likes, comment and etc!






















