US02Y trade ideas
This Time is Different (so far)An inversion between the 2yr UST yield and the Federal Funds effective rate normally does not exceed -1%. When that happens, it's an indication the bond market is not getting the reaction from the Fed that it "expects" (or maybe it is a "want"). Inversions of this degree have normally been unkind to the equity market, but that is clearly not the case here in late 2023. Something to keep an eye on as the calendar turns to 2024.
US 2 and 10 Years Yield for evaluating the recession riskPlease note that these are my premature ideas. I don't claim any certain things.
I just evaluating the Technical Charts, which are important indicators to me for unknown upcoming global events.
I added my comments on the charts with text boxes. I am sure that you can also understand what is going on.
2Y Yields LowerTVC:US02Y
2Y Yields heading lower.
Sometime over the next 12-18ish months, I believe we'll see 2Y yields fall to 200-275 bps.
Headline inflation numbers are lower and dropping.
The Fed has effectively pulled a rabbit out of a hat in the act of raising interest rates by ~500+ bps, while avoiding the obliteration of the economy. (thus far)
If the economy does falter in the coming months; the Fed will lower rates.
(No further explanation needed)
Despite the endless repetition of "higher for longer" from Fed officials; I believe that the Fed will lower rates even if the economy and markets remain strong.
The establishment powers in the political & financial world's that the Fed straddles both crave the same thing... Cheap Debt.
In addition to this, there are over $34+ Trillion reasons to lower rates as soon as possible.
Not to mention, the upcoming election...
The market is anticipating lower yields as well.
We're seeing the market preemptively increase exposure to interest rate sensitive assets.
(i.e. - tech stocks, indices, cryptos, beaten down govt bonds, etc.)
On a technical basis, the weekly chart of 2Y Yields is showing substantial bearish divergence.
Weekly RSI shows a bearish RSI Swing Rejection (March '23 and October '23 highs)
The 50% & 61.8% Fib levels give us a target of 200-275 bps.
The median line set suggests that yields could arrive at the target area sometime between May '24 - May '25.
Conclusion: Short Yields.
Fat_Fat
High Yield to Stay, Why?This video tutorial, we will learn the difference between:
• Interest rates and yield
• Healthy yield curve and an inverted one and
• The risks and opportunities with a prolong inverted yield curve (since March 2022)
Micro Treasury Yields & Its Minimum Fluctuation
Micro 2-Year Yield Futures
Ticker: 2YY
0.001 Index points (1/10th basis point per annum) = $1.00
Micro 5-Year Yield Futures
Ticker: 5YY
0.001 Index points (1/10th basis point per annum) = $1.00
Micro 10-Year Yield Futures
Ticker: 10Y
0.001 Index points (1/10th basis point per annum) = $1.00
Micro 30-Year Yield Futures
Ticker: 30Y
0.01 Index points (1/10th basis point per annum) = $1.00
Disclaimer:
• What presented here is not a recommendation, please consult your licensed broker.
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Raising Rates Here Will Blow Japan Up. Blowing Up US Yields
Up coming Federal Reserve meeting, there's still underlying inflation in the USA but the amount of interest on debt + Japan buying US debt while their currency is almost completely free falling.
Would be one of the worst fiscal policy disasters since 2009.
Looking at Japan's society they're completely clueless of how close they are to blowing up.
1 & 2 Yr Yield look like they're running out of steamGOOD MORNING!
These will be DAILY charts but what we really need to see is how the week will close for all of these (this was thread on X)
TVC:DXY & TVC:TNX both look like they're running out of steam. The #Dollar does seem to be fighting this break.
30YR Treasury, read above statement.
1YR stopped going up long ago.
Are 2 Yr #Yields finally breaking?
Stock Market looks weak The market looks very exposed as one of the big 7 tech stocks performed poorly this earnings season. Also, interest rates look like they may have peaked however, history shows when the short-term rates fall vs long-term rates (or when rates are cut) there is a correction in the stock market.
The bear steepener and when we will get our scripted eventWatch this curve because the market always knows, and the market isn't as free as many think. Gives us a sign when the true risk off kicks in. Might be due for a short relief soon, and then it starts. A potential bounce area is market as white, might not match and steepen now, but the breadth indicates that more likely than not we will get it in a matter of weeks now since we've technically broke out from the pattern.
2 Year Yield On the EdgeThe US Treasury bond 2 year yield is at a level last seen in May 2006. In July 2022 the yield broke out of what was a long term down trend since 1989. Now we can see what happens next. Will the rates breakout above this level? If they do then that could indicate a real trend shift.
RSI divergence on 2 year yields Divergence implies we have seen highs in rates. RSI making lower highs as yields move up.
Looking for a bull steepener as economy enters recession or slows.
Applicable to traders in bonds. The short rate is most affected by Fed policy. A weakening in 2 year yields May presage Fed cuts.
5 Steps:Turn Your US02Y Into A Asset#1-This Is The US02Y Your Broker Doesnt Want You To Know About
Trading these bonds can be a challenge if you dont know technical analysis.
#2-What Everybody Ought To Know About The US Government Bonds 2 Year Yield Business
Getting a yeild on your trade is the most important factor especailly when it comes to ttrading for profit.
#3-These Must Be Some Of The Best Kept US02Y Secrets In The World
The secret is always to know when the right time to buy is, once you know that then you can make a good profit on your trades.
#4-WARNING:Do Not Try Another US02Y Trade Until You Get This
If you dont know how to trade TVC:US02Y this kind of set up then better yet do not do it without past experience or knowledge.
#5-How To Trade US02Y Minute By Minute
Trading this set up is something so simple.So take a look at the chart above you - have you noticed that the candle stick is below the bollinger band? what does that tell you about this price momentum?
Disclaimer:This is not financial advice do your own research before you trade
Rocket boost this content to learn more
US Government Bonds 2 YR Yield - Strong bearish divergenceOn the above 2-week chart the 2 year bond yield has increased an astonishing 4500% in a little over 2 years, perhaps you’ve noticed?. The chart is now indicating rising yields are a thing of the past, at least until 2026. From here on it is pauses and cuts until the real economy shows signs of recovery. This will likely be a difficult 2 years ahead for many.
The bearish divergence is significant. Multiple oscillators now print bearish divergence with the rising yield as measured over a 10 month period. Look left. On this time frame with this many oscillators printing divergence, the yield corrected or appreciated significantly and with momentum.
Astonishingly a majority of ideas in social media circles and even here on tradingview.com are calling for higher yields. Maybe; however the chart is saying something very different.
Is it possible yields continue to increase? Sure.
Is it probable? No.
Ww
US02Y : The BOND dilemma The recent dot plot is quite interesting. It has 2 important notes:
a) no recession
b) you got to wait longer if you are looking for cuts.
This caused yield to move UP - to price in a longer Fed pause.
And I think both short and long yield to continue to be HIGH.
In a situation with high DEBT load, a higher rate environment is trouble.
$ FX and US yield sometimes move in unison and sometime not. We just need to know when it does and when it choose not to.
We are now again at the point when things tilt. I THINK that when yield goes any higher, DXY would need to move LOWER to compensate for the higher rates. As we know, DXY is now facing some resistance on its way UP.
In a week or two, US might face another possible government shutdown. We must trade with caution.
Till the next dot plot in 12/2023, DXY might NOT move up as fast as earlier thought.
Good luck.