GB10Y trade ideas
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!
UK 10yr Yields: Outright BullishNote: all comments regard yields, not bonds: “new uptrend” = uptrend in yields and thus a bear market in bonds.
The recent pullback has left a new higher base above the daily/weekly breakout level around 1.403%. This higher base confirms the primary uptrend and thus strong bullish outlook for yields over the longer term. Our focus remain on the first resistance at 2.05% (minor projection) and the much more hefty projection around 2.70%. Here the pivots of 2014 converge with the 162% extension.
Yields are outright bullish as long as 1.403% holds as new support.
Primary trend: positive
Outlook: positive
Strategy: long yields
Support: 1.403% / 1.28% / 1.207%
Resistance: 1.40% / 2.05% / 2.70%
Outlook cancelled/neutralized: below 1.403%
TVC:GB10Y
UK 10yr Yields: major trend reversalAfter a period of consolidation and uncertainty the market has finally chosen direction. The multi tested trend line of 2013/2014 has been taken out triggering a trend reversal higher. Yields should rally towards the first projection at 2.05% without too much trouble. On a 6-9 month horizon the main target comes in at ‘a whopping’ 2.69%.