US 10Y TREASURY: waiting January inflationDuring the previous week there has not been significant news published for the current state of the US economy, so the Treasury yields remained relatively stable, moving within a short range. The US Labor department revised its data for the inflation in December from 0.3% down to 0.2%, but the US Treasuries did not react much to this news. One of the reasons might be that the week ahead will bring a release of the inflation rate for January, in which sense, December`s data might be of less importance at this moment. At the same time several Fed officials publicly noted that the Fed is resilient to cut rates too soon, in which sense, the first rate cut might be postponed from the period currently expected by the market.
The 10Y US Treasuries started the previous week around the 4.0% level, but moved to the higher grounds during the week. Highest weekly level reached was 4.19%. Yields are testing the highest level from the end of January, but without an indication that this level might be clearly breached. This increases probability for a short reversal to the down side, however, at this moment on charts there is indication for the level of 4.0%, with quite low probability that yields could go lower from this level in the coming week.
US10Y trade ideas
US10Y: Key Moment for Stock MarketHi Trader!
U.S. Treasury yields climbed on Wednesday after an unexpected rise in UK inflation last month and stronger-than-expected U.S. December retail sales data strengthened the case that interest rate cuts will not be as imminent as the market expects. The UK inflation print, as well as more push-back from European Central Bank officials on Wednesday against interest rate cut bets, pushed European bond yields higher. Treasury yields, which move inversely to prices, followed suit, with the uptick gaining momentum after Commerce Department data showing retail sales in December grew by 0.6% month on month, above the 0.4% economists had expected in a poll. Weak demand for a 20-year bond auction also helped lift yields later on Wednesday.
💡 "December retail sales reflect an economy that, although slowing, continues to be underpinned by consumer spending," said Quincy Krosby, chief global strategist for LPL Financial. "For the Federal Reserve, slower consumer demand would help propel inflation to decelerate at a faster pace; however, with consumer confidence gaining momentum, the economic landscape remains on solid ground," she said in a note.
🔴 The short-end of the yield curve, more closely linked to monetary policy expectations, led the move higher. Two-year yields rose about 13 basis points to 4.354%, their biggest daily increase in over a month. Benchmark 10-year yields US10Y added about four basis points to 4.104%, their highest since Dec. 13.
🔴 From a technical perspective, chart shows a bearish impulse structure forming, and this technical bounce could form the second corrective leg (wave 4) before another bearish swing (wave 5). That said, the key resistance is around 4.23, and a rally above it could invalidate the technical structure.
We correctly predicted the surge in inflation last year, but now the geopolitical context has become more complex:
(Click on chart below)
In conclusion, if this analysis is correct, Stock Markets (SP500, Russell, DJ,...) should see another rally with potential new High Top...
Trade with care
Like | Share | Comment
If crude oil breaks down then USD can stop at resistanceHey guys,
Crude oil came down recently, which can help inflation to come down as well if energy market will continue to decline. In fact I see nice bearish pattern, so my assumption is that US yeilds and USD can be trading at resistance.
In this video I will also look at the chart of the 10 year US yeilds where I see greater chance for a drop to 3% rather than rally back to 5%.
Hope you will enjoy the content.
Grega
US 10Y TREASURY: relaxation is comingUS FED officials decided to leave the rates unchanged at the FOMC meeting during the previous week, however, the much better than expected jobs data influenced major Treasury yields move during the previous week. Although the market was expecting to see the figure of 180K, the released figure was almost doubled to 353K. In the eyes of market participants, this means high potential that the inflation will not drop down to targeted 2%, as expected, but the period might be prolonged, in which sense, Fed might keep currently elevated interest rates for a longer period of time, then previously estimated. In line with it, current expectations are that the first rate cut might occur in May this year. The 10Y Treasury yields responded accordingly, with a shift from 3.82% up to 4.04% as of the end of the week.
The 4.0% has been tested for one more time. Based on current charts, there is a low probability that yields can go to the higher grounds. Instead, some relaxation could be expected in the week ahead, down to 3.9%, eventually 3.8% in the coming period.
Important US 10-year auction this week!US 10-year yield spiked on Friday which strengthened the 61.8% Fibo retracement rate of 3.931%. The main resistance rates now sit at 4.057% and 4.115%, the 50- and 200-day MA’s. Given the lower high made last week I suspect the next move will be higher towards the 38.2% Fibo rate of 4.347% so keep your eyes on this week’s US 10-year bond auction.
Assessing US T-Note Pre-FedWe're examining the US Treasury Note in anticipation of the Fed meeting. The market seems to have finished a corrective pattern ('a-b-c') and is currently facing resistance from the 55-day and 200-day moving averages. This puts it in a defensive position prior to the meeting.
The central bank is widely anticipated to maintain interest rates, but the spotlight will be on any indications regarding future rate cuts from policymakers.
Disclaimer:
The information posted on Trading View is for informative purposes and is not intended to constitute advice in any form, including but not limited to investment, accounting, tax, legal or regulatory advice. The information therefore has no regard to the specific investment objectives, financial situation or particular needs of any specific recipient. Opinions expressed are our current opinions as of the date appearing on Trading View only. All illustrations, forecasts or hypothetical data are for illustrative purposes only. The Society of Technical Analysts Ltd does not make representation that the information provided is appropriate for use in all jurisdictions or by all Investors or other potential Investors. Parties are therefore responsible for compliance with applicable local laws and regulations. The Society of Technical Analysts will not be held liable for any loss or damage resulting directly or indirectly from the use of any information on this site.
Doesn't matter what we do - $TLT $TNX if flatBased on the chart analysis - our two options both result in the same location. If we are bullish on rates, then rates will increase and see heavy resistance on the upper side. On the same right, if we drop lower, we will see heavy resistance there as well. My expectation is that rates are the same for the immediate future.
US 10Y TREASURY: gearing for FOMCReleased US economic data during the previous week were driving the sentiment for the US Treasuries. Released data of Q4 GDP growth rate of 3.3% was better than anticipated by the market`s 2.0%. Also released PCE data show further easing of inflation pressures, where core PCE reached 2.9%, lower from expected 3.0% by the market. This supported market sentiment on a Fed's rate cuts during the course of this year, so the yields responded to those expectations. The 10Y Treasuries started the week around 4.2%, but ended it at 4.14%.
The FOMC meeting is scheduled for the week ahead. In case that Fed`s rhetoric reveals anything new that the market did not priced, then it could be expected some volatility on markets, but also in Treasury yields. However, in case that everything runs smoothly, as expected, then the 10Y US yields should further ease, at least till the level of 4.10%, with some potential for 4.0%.
US10Y About to form a 1D Death Cross. How to trade it?The U.S. Government Bonds 10 YR Yield (US10Y) has gone a long way since our last 1D analysis 3 months ago (October 21 2023, see chart below), hitting all 3 Targets in the process:
This time however it is in a completely different situation as it may be rebounding since the Higher Low at the bottom of the long-term Channel Up on December 28, but is being rejected on the 1D MA50 (blue trend-line) since Friday. As a result by tomorrow it will complete a 1D Death Cross, which is technically a bearish pattern.
Last time it was formed however (May 04 2023), it did so exactly on a bottom and a very strong 6-month rally started. Also technically, every time it finished such a downtrend (blue ellipse), strong rallies above the 1D MA50 followed.
As a result our trading plan will be based on simple break-outs. As long as the price closes a 1D candle above the 1D MA50, and remains within the Channel Up, we will be bullish targeting the 5.000% Resistance. If however it breaks below Support 1, the loss will be minimal and we will reverse to a sell, targeting Support 2 at 3.300%.
-------------------------------------------------------------------------------
** Please LIKE 👍, FOLLOW ✅, SHARE 🙌 and COMMENT ✍ if you enjoy this idea! Also share your ideas and charts in the comments section below! This is best way to keep it relevant, support us, keep the content here free and allow the idea to reach as many people as possible. **
-------------------------------------------------------------------------------
💸💸💸💸💸💸
👇 👇 👇 👇 👇 👇
$DXY pumping as are Yields and OilPretty good calls on the following:
(see our profile for more info)
The US #Dollar maintains its upward trend.
The 10yr #yield is also looking pretty decent.
The 30 Yr bottomed before the others and has been leading #interestrates.
#OIL broke downtrend and has been looking better.
US 10Y TREASURY: the last call for 4.2%?Although the US equity market was strongly supported during the previous week, where one of the reasons was expectation on forthcoming rate cuts, still, the US 10Y Treasuries reacted in a bit different manner. Yields were testing the level of 4.2%, after successfully breaking the 4.0% level. As per CME's FedWatch tool, traders on the futures market have decreased their expectations for the rate cut in March this year. The percentage dropped from 71% to 53% within a week. This came after the jobless claims were released, which were at its lowest level since 2022. A too strong jobs market might be an indication of increased spending and in this sense, potential for the increased inflation, which might impact Fed's decision to postpone rate cuts for the second quarter of this year.
The level of 4.2% will be tested at the beginning of the week ahead. However, there is a relatively low probability that this level might be breached in a week ahead. In this sense, yields might look toward the 4.0% support line to test it once again.
US 10Y : "FED vs MARKETS" (...who will win?)Hello Traders!
The FED's monetary policy is not convincing the markets, but Powell seems very determined to meet his inflation targets. In near term, market seems to want to counter this hawkish monetary policy, but that could change going forward. In short term, yields remain at high levels and I don't exclude that this rally could continue for the last bullish impulse with wave 5 formation.
Does this bullish pattern meet economic fundamentals over the medium term? ...What is your opinion?
--------------------------------------------------
--------------------------------------------------
...trade with care! 👍
If you think that my analysis is useful, please...
"Like, Share and Comment" ...thank you! 💖
Cheers!