Regardless of the fundamentals that are dominating the global economic scene (trade wars), there is an interesting long term, and rather cyclical from the looks of it, pattern developing on the U.S. Government Bonds 10 YR Yield.
The pattern is a declining Head and Shoulders formation on 1W. The last two times that the same pattern emerged (in 2017 and in 2015 -...
Rate inversion again as predicted, right on top of the line I drew. Definitely a potential for things to get ugly. Be careful if buying the dip. All cash right now, and if I buy in, it's daytrading only.
The spread between the German and US 10-year bond yield seems to have carved out a sideways channel this year. As of now, the channel resistance is seen at 244 basis points.
A break higher would imply resumption of the rise from November lows of 280 basis points. Tighter German-US yield differentials would be positive for EUR/USD.
So, I would look to buy...
Fundamentally, The US is delivering the strongest fundamentals when compared with its counterparts across the world. Plus the recent data have been little under expectation but that won't deteriorate/dissipate the hope for the investors, I think. Also, this will keep the dollar bid, especially USDJPY . Now thinking logically, the yields will increase when the bond...
USD/jPY approaching 110.84 - support of trend line from Jan 4 lows.
Break lower likely with RSI below 50. Chaikin money flow below drops below zero.
10-year treasury yield against fails to see falling wedge breakout. If the yield breaks higher from falling wedge, UJ will likely bounce from the ascending trend line support.
All my thoughts are on the chart.
For reference, definition of treasuries yield curve:
According to Investopedia, the yield curve graphs the relationship between bond yields and bond maturity. More specifically, the yield curve captures the perceived risks of bonds with various maturities to bond investors.
The U.S. Treasury Department issues bonds with...