US10Y: Buy signal on the 1D MA50.The U.S. Government Bonds 10 YR Yield is neutral on its 1D technical outlook (RSI = 54.381, MACD = 0.046, ADX = 33.861) as it is on a bearish wave insde the long term Channel Up pattern. The last HL bottom was priced on the 1D MA50. That is the most efficient buy entry to target the 4.0 Fibonacci extension (TP 5.100).
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Government bonds
US 10Y Yields - Is 5% Yields A Real Possibility? Happy new year traders!
This is a perfect time to do a review on Government Bond Yields as it's the 1st month where you see the beginnings of the 6-Month candle form, which can be very powerful for gauging a bias.
Here, we look into the technical and psychological elements as to why 5% might not be as soon as you think...
US 10Y TREASURY: not so scary inflationDuring the previous period, the 10Y US Treasury yields were heading toward the 4,8% level, in a fear of potential higher inflation in the US supported by the strong jobs market. However, posted inflation figures during the previous week, showed that the inflation level in December was modestly below market estimate. This was a sign for the market that the Fed might actually pursue with a planned two rate cuts during the course of this year. In this sense, Treasury yields tumbled down, toward the lowest weekly level of 4,57%. Still, they are ending the week at the level of 4,62%. In addition to a slowdown in inflation, a note from Fed Governor Waller that the Fed might cut multiple times this year, further cooled down the Treasury yields.
It could be expected that the markets will continue to consolidate in the coming period, after the inflation figures showed that there is a decreasing trend, regardless of a strong jobs market. However, there is still a day to watch on Monday, January 20th, where an inauguration of a new US administration will take place. There is some probability for a higher volatility on this day, but still, it could not be expected for some higher moves to either side.
2Y/10Y Treasury Yield curve is flashing a warning for markets The Yield curve is writing a familiar script.
Prior to the Great Crash of 1929 the yield curve was inverted for 700 days.
Janet Yellen held the yield curve inverted for the longest period in history, 789 days from Jul 5, 2022 to Sep 6, 2024.
Is it "different this time?" Not long to find out. 🙃
Are We Forming A Top On The US10YR?It looks like we may be forming a top on the US10YR. I assume there will be some volatility in the first few months with the new Trump administration. Trump went on record saying that rates are currently too high. His last term in 2017, it took rates about 5-6 months to come down. Will this time be faster?
Bitcoin (BTC) vs. US 10-Year Treasury Yield AnalysisKey Dynamics:
Rising inflation has pushed the US 10-Year Treasury Yield (10YR Yield) higher, creating macro headwinds for Bitcoin as rising yields often reflect tighter financial conditions and increased risk aversion.
Despite this, Bitcoin has shown resilience, maintaining an upward trend in its price action.
Current Setup:
10YR Yield Resistance Zone:
The 4.70%-5.00% range is a critical resistance zone that has capped yields in the past.
A rejection at this level would signal easing inflation concerns and a potential stabilization in financial conditions, supporting BTC's bullish trajectory.
Breakout Scenario:
If the 10YR Yield breaks above 5%, it could signal further inflationary pressures or expectations of higher interest rates for longer.
This would increase the opportunity cost of holding non-yielding assets like Bitcoin, potentially weighing on BTC's price.
Implications for Bitcoin:
Bullish Outlook:
A rejection at the 10YR Yield resistance, combined with improved inflation control, could act as a tailwind for BTC, enabling it to continue its upward momentum.
BTC’s trajectory could also benefit from a rotation of funds into risk assets as financial conditions stabilize.
Bearish Risks:
A breakout above 5% would likely put downward pressure on BTC, potentially leading to a period of consolidation or retracement in the face of macroeconomic uncertainty.
Key Levels to Monitor:
10YR Yield:
Resistance at 4.70%-5.00% and the significance of a potential breakout or rejection.
BTC Support and Resistance:
Short-term support: $91,000-$93,000.
Resistance: $102,500-$105,000.
Conclusion:
Monitoring the interaction between the 10YR Yield and Bitcoin's price action is critical. While BTC's upward trend remains intact, a rejection in yields near 5% could strengthen bullish momentum, while a breakout above this level may present challenges. Upcoming economic data will play a significant role in shaping both the yield curve and BTC's trajectory in the near term.
US02YR vs US10YR vs FED RATE + Recession overlay This chart provides a comprehensive visual analysis of the relationship between the 2-Year Treasury Yield (US02YR), 10-Year Treasury Yield (US10YR), and the Federal Funds Rate (FED RATE), with shaded regions indicating periods of U.S. recessions. The data captures the interplay between short-term and long-term interest rates, monetary policy, and economic cycles, offering insights into potential macroeconomic trends
US 10yr Yields Eyeing 5%?Chart Analysis:
The 10-Year US Treasury Yield continues to climb within a well-defined ascending channel, highlighting robust bullish momentum in recent months.
1️⃣ Ascending Channel:
Yields are trading near the upper boundary of the ascending channel (green-shaded area), reflecting sustained upward pressure.
Traders should monitor reactions at this boundary for potential breakout attempts or a pullback toward the channel’s midline.
2️⃣ Key Resistance Levels:
4.80%: Immediate resistance level, capping recent gains.
5.02%: A critical horizontal resistance zone, representing a multi-year high and potential target on continued strength.
3️⃣ Moving Averages:
50-day SMA (blue): Trending upward at 4.33%, providing dynamic support.
200-day SMA (red): Rising at 4.24%, reinforcing the broader bullish trend.
4️⃣ Momentum Indicators:
RSI: At 75.68, signaling overbought conditions, which may precede a consolidation or corrective pullback.
MACD: Bullish momentum remains strong, with the MACD line above the signal line and in positive territory.
What to Watch:
Sustained breaks above 4.80% could pave the way for a test of 5.02%, with potential for further upside if this resistance fails.
Any pullback may find support near the 50-day SMA or the ascending channel’s lower boundary.
RSI overbought conditions suggest vigilance for potential divergences or reversal signals.
The 10-Year Yield’s bullish structure remains intact, supported by rising moving averages and upward momentum. However, caution is warranted as yields approach critical resistance levels.
-MW
Weekly Leading Indicators are all GO BearPretty much enough said.
Warning given weeks ago.
Now it is turning.
ALL the leads are bearish, red flags ON
Just waiting for the playbook to pan out with a hard pull back. Last week we already saw the equity markets do a trend reversal pattern of Lower Highs and Lower Lows.
Time to deliver the main Bearish course...
Stay safe!
SG10Y - a peek into the next few weeks.As pointed previously for the last few years... the SG10Y Singapore Govt 10 year Bond Yields chart have an uncanny correlation to give us a heads up on when the US Equity markets like the S&P500 SPY SPX are going to keel over and drop.
On such instance is here and now.
A higher high and a clear breakout after a Fibonacci retracement, within a bigger retracement. This is a clear and present indication that (US) equity markets are going to keel over and drop.
Bears are just around the corner.
Pain till Mid-Feb
Heads up.
US 10Y TREASURY: surprise, surpriseThe US jobs data posted during the previous week was the highest surprise for markets in the recent period. The US economy added 256K new jobs in December, which was much higher from market expectations. At the same time, the unemployment rate dropped to the level of 4.1%. Certainly, such developments are positive for the US, however, investors were not happy. A strong jobs market and a too strong US economy will make the Fed halt further cuts of interest rates. Some analysts already came up with their predictions that the first rate cut in 2025 might occur in September. For other analysts it is questionable whether the Fed will cut even once in 2025. Whatever these initial expectations, still the FOMC meeting is scheduled for January 28th, where more information will be available and further priced.
The US 10Y benchmark yields reacted strongly to jobs data on Friday. Yields reached higher grounds, at 4,76%. At one moment, yields reached the level of 4,8%. Yields returned to the levels from April last year. Until the January FOMC meeting, it could be expected that the market will continue to test levels around the 4,8%. However, the picture will be much clearer after the inputs from Feds officials. Hopefully, there will be no more surprises.
[EUCHF] Reallocating your FIAT-Cash to your friendly neighbour OANDA:EURCHF
Hello all,
TL;DW:
Without seeing a precise trade entry/exit this 'trade' is more about positioning you FIAT into another country.
🧀 The reward is (more) cheese
Knowing that inflation will (hopefully not!) come back in full in 2025, it can be a wise move to prepare for it in advance and position yourself accordingly.
🧀 Super Swiss Cheese Target of below 0.9 and below
I assume a continuation in this drawn channel of standard-deviations, which will lead to a target over a time horizon of 9+ months somewhere at 0.90 or further below 0.85.
Please also watch the video.
Thanks! 🚀
Market Update: UK 10Y Yields Back on Nov 4th, we highlighted a potential triangle pattern on UK 10Y yields. 📈 At the time, we noted that a weekly close above 4.75% would complete the pattern, offering a potential longer-term upside target of 6.6%.
Last week, we got a weekly close above 4.75%! While a monthly close would strengthen the case, for now, as long as yields stay above 4.50%, I'm leaning into this scenario.
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Bond prices under pressureThe price on the US 10-year Treasury note fell to almost 96.0 on Friday, after payrolls report came stronger than expected, reinforcing the view that Fed would need to slow down rate cuts.
The price on the UK 10-year gilt fell to 89.6, the lowest since August 2008, and broke down the support at 91.0.The pressure in the UK bond market has been further amplified by mounting investor concerns over the nation’s debt levels and the government's ability to restore public finances while implementing its budget plans.
This rise reflects a broader increase in bond yields fuelled by concerns over Trump’s policies and a hawkish outlook from the Fed.
10y+ bonds are becoming even more attractive for investorsThe US economy in December added the most jobs since March and the unemployment rate unexpectedly fell, capping a surprisingly strong year and supporting the case for a pause in Federal Reserve interest-rate cuts.
Nonfarm payrolls increased 256,000, exceeding all but one forecast of economists. The unemployment rate fell to 4.1%, while average hourly earnings rose 0.3% from November.
YIELDS are rising, and traders are fully pricing in the first rate cut in October. The 10-year yield may aim for the 5% level, similar to the March 2023 movement. However, let's not forget that at that time the interest rate was 5.5%, and there were no expectations for combating 9% inflation.
Currently, inflation is even below 3%, and concerns that the US will impose new sanctions or that tax cuts will create a new wave of inflation are purely speculative fears, not facts, which have created an emotional backdrop in the markets.
On the contrary, 10, 20, and 30-year bonds are becoming even more attractive for investors.
And don't forget, pre-election promises often do not turn into reality.