AUD/USD AU vs. US 10 -year bond yield.China Q4 GDP Growth is expected to be at the slowest pace since 2009 at 6,4% YoY. This will probably also drag AUD down because of the high export to China. Meanwhile the Australian rate will be unchanged for quite a bit, where the Housing market index is also due to fall over the curs of 2019. Australian Housing market have been rallying for long time, Now the banks are stepping in to make it harder for consumers to apply for a mortgage loan. The GDP growth is also expected to be at a steady level through out the year.
The widening spread between the Bond yield´s is also an indicator of a weaker AUD. After the US 10Y bond yield crossed the AU10Y in start 2018 AUD declined throughout the year. While bond yield´s are still expected to widen, we could see a weaker AUD until mid-year.
Holding short position and will add again at 0,70100 and around 0.68200 if it will go that far. meanwhile Monitoring closely the AU data.
Bondyields
Compare between GOLD and Real Yield 10ywhen Real yields negative mean HOLD Cash will guarantee Loss, so Fund flow will move to risk asset like Equity.
Gold actually is not risk asset but still effect from this event.
Warning- Inverted Yield Curve likelyUS10
US02
This may not look like something to watch and you may not know about it. Only about 2% of investors understand it, however 98% of institutional traders (the “smart money”) watch it like the World Cup finals. Its the 10 year treasury yield to the 2 Year treasury yield ratio/spread.
Bottomline: If it goes negative (hits the dotted yellow line) = Inverted Yield Curve = BAD for Stocks and GOOD for Bonds.. I’d reevaluate everything and have stop losses for every trade.
Side note: I have no idea what it means for crypto because bitcoin did not exist the last time yield curve went inverted late 2007.
The end of plunge? Bonds say YES.Bond yields showed support at 3.116%. This MAY be the end of the plunge in stocks because of the slowdown in the yields' move, but the view is still short term bearish.
(The low didn't form yet, watched closely, but if it forms like I presume, then the divergence occurs with SMI idicator)
Us 10 year bond yields :Will we breach 3% or will the ppt save uIf US 10 year breaches 3% resistance,
Katy bar the door ! I believe this
is a key technical level that may
trigger a larger sell off in the bond
markets. Remember that as the bonds
sell off the yield ( interest rate ) rise's .
As of right now the yield on a 30 year bond
is @ 3.14% and a 10 year is @ 2.96% !
So if you were buying bonds why would you
loan .gov the same amount for 30 years
vs 10 years when the yield is @ equal ?
Answer : you wouldn't unless your the fed reserve bank
who is allegedly selling as well, Quantitative Tightening .
So who will buy all this debt.... ?
Out of neutral spread, looking for directional again. Hello Traders,
I've exited my neutral options spread on $TLT today for decent gains as price retreated back to the center of it.
I am now looking for the potential to add back into a directional position on $IEF (better cost basis then $TLH or $TLT) through common shares if we get a bounce at the 23.6% fibonacci level. Stop will be announced in the updates section if I decide to add back into a bullish position.
Anyhow, good luck to any in bond positions.
Trade smart, and with a plan. Cheers.
=)