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US Government Bonds 2 YR Yield

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US02Y trade ideas

🔥 US Bond Yields Suggest More Interest Rate Hikes: BEARISH 🚨The US 2-Year bond yields are important because they tell us how much returns an investor will get by lending his money to the government. In periods of higher economic risk, investors demand higher returns. Thus, the height of the bond yields can be used to determine whether we're in an economically risky period or not. As seen on the chart, once the 2-year yield starts increasing, the FED will increase the interest rates. Higher interest rates are BEARISH for the markets. With the 2-year yields making a new high recently, it suggests that the FED will need to increase the interest rates further. Is the current 25 basis points enough to tame inflation and market risk? Certainly not if the yields will keep like this. If the yield will keep on rising there's a decent probability that stocks will continue to go down. If so, crypto will likely follow. For now there's little reason to believe that we're going to make new bear-market lows, but once stocks will really start selling off this probability will increase. Will monitor.
TVC:US02YShort
by FieryTrading
4
US 02Y possible black swan for stocksUS 02Y is close to breakout from the bull flag. After reaching the top, the price of 2 y did consolidate but never dropped hard. After consolidation on this level, it seems it's ready to break out of the bull flag which would be very bullish for 2 Y but bearish for the market as a whole. Remember, even though a lot of retail traders follow FERD, they should follow 2 Y yield as that is what FED and Powel followed. FED is much smaller than the bond market, and the interest rate on the 2-year bond is something that is important for FED. Also one of the main problems for retail traders is most of them don't follow yield inversion which is now at a huge level. Meaning the interest rate is now higher for a 1 or 2-year bond than on 10 or 30 which is insane and is a sign of huge money indicating something big will break out soon. Every yield inversion till now finished with massive stock collapsing, so will likely now too. With the breakout of the bull flag, there would be a trigger possibility for 2 y to retest highs which would mean the FED fund rate must go much more than 5% which would be very bullish for US Dollar/DXY and very bearish for stock, crypto, and gold and silver/ commodities as a whole. A good thing would be that all would have pressure on inflation which we all need at this moment.
TVC:US02Y
by Consistent_Trades
3
Bond Yield Update2Y bond yields still melting up This leads me to believe that tomorrow is gonna be a pump and dump, nobody expecting a rate cut soon, and market still needs to price in a rate hike for July. The algos still have to make their money, so I expect a gap up then a sell off as bond traders price in a rate hike. Remember the inflation target is 2%, the expected numbers are: Expected CPI Tuesday 5:30am USD CPI m/m 0.5% USD CPI y/y 6.2% USD Core CPI m/m 0.4% I think the numbers come in as expected, the market pumps it because it's better Y/Y but then sell off because of M/M numbers like Europe did last week.
TVC:US02Y
by hungry_hippo
4
Bond Yields 1 vs 2 yrThere's still an inversion between 1 and 2 yr bonds, which means the market still has a rate cut priced in for next year. On top of that, it looks to me like we're headed over 5% this year, so even the 1 yr needs to go up. What's interesting is that the rate inversion started at the same time as the market rally, last Oct. I dunno if the market fixes some of that Tuesday or just gets all pumptarded because inflation only went up .5% m/m like Germany did, lol. .5% m/m extrapolates to 6% yearly, and it took then a few hours to figure it out, lol. Remember the target inflation is 2%, and it;s gonna require more than one more rate hike to drop it down. Pretty good chance Tuesday winds up being a pump and dump like Europe, but I'm gonna carry a small position in TLT and BITO puts. Decide against doing a straddle.
TVC:US02Y
by hungry_hippo
S&P500 may be on the verge of a mega rally based on the US02YThe chart represents the US02Y on the 1W time-frame against the S&P500 index (green trend-line). The phase that the US02Y has entered is similar to that in entered in December 1994. As you see shortly after a Golden Cross, it made a Lower High on the RSI, flashing a Bearish Divergence, while the MACD Double Topped. This is exactly the same sequence of events in the exact same order since the June 2022 Golden Cross. The US02Y fall of December 1994 practically started S&P's mega rally of mid-late 90s that led to the 2000 Dotcom Bubble. If history is repeated, instead of a continuation of the Bear Market that most expect, S&P500 my be on the verge of a new multi-year Bull Cycle. ------------------------------------------------------------------------------- ** Please LIKE 👍, FOLLOW ✅, SHARE 🙌 and COMMENT ✍ if you enjoy this idea! Also share your ideas and charts in the comments section below! ** ------------------------------------------------------------------------------- 💸💸💸💸💸💸 👇 👇 👇 👇 👇 👇
TVC:US02Y
by TradingShot
6
US02Y : Market speaks out!It seems that the front end of the curve is starting to 'speak out'. Unlike in the past, it is NOT moving up despite the recent 50% rate hike. This is significant because whenever the FRONT starts acting up, we can expect something BIG and SIGNIFICANT coming up. As we can see, a BIG portion of market participants disagree with the recent Fed decision. In fact they are now betting against the Fed. This is a lot of money involved here. We are not talking day traders like you and me; or even big speculators. The Bond Market involves much bigger players and their opinion matters. There may be two reasons. One is that they see the recent 'slow down' in rate hike might soon turn into a freeze and pivot, with a 'soft landing'. The second is more important. They might sense that the economy is nearing a RECESSION when everything grinds to a halt. Some are forecasting a deep and long lasting recession. For this, we look at the US10Y and see how much it will drop. But whatever it is, 2023 will not be a good year. Three days ago, I heard someone talking that GOLD will reach $3,000 in 2023! And so says Saxo Bank. Perhaps you should be aware what will happen just by looking at Bond yield which is saying 'future growth looks 'bleak'. Gold, Oil and stocks will be at RISK with the coming recession. Whether it is a BIG one is still debatable. But if the Fed insist on hiking again, chances are it is going to be a BIG one. Money supply, at least in the US, is FALLING. If you look at M2 and do a simple extrapolation, to get gold at $3,000, there needs to be a really HUGE increase in MONEY SUPPLY (note that inflation do not determine Gold price. It has always been money supply. Whether money supply leads to inflation is another thing. But if market participants think that inflation is going to high in the future, would they continue to drive yield lower?) . USDJPY would be a nice to trade. It is just a matter of looking for the right time/place. EURUSD is a bit risky with the ongoing war in Ukraine. Have a nice weekend. P/S : As always, do not just believe what I say. Use your common sense.
TVC:US02YShort
by i_am_siew
4
Martin Luther King Jr. Day - Market AnalysisKey events: US – Martin Luther King, Jr. Day UK – BoE Gov Bailey Speaks The recently released CPI is prompting investors to question the Fed's plans to raise the overnight rate above 5%. The market doesn't seem to care, and after this data coincides with the forecast, yields are falling across the curve. Thus, 2-year Treasury yields have fallen to their lowest level since October, with room to fall substantially. If the Fed really does intend to raise rates that much and maintain tight financial conditions, then it appears that the market is not listening to the central bank and not paying attention to what it wants. This only suggests that the Fed's forward guidance is no longer working. The Fed will have to dig into its toolbox to convince the market that it is serious. The central bank may have to talk about accelerating the pace of balance sheet reduction or outright sales of treasuries and mortgage-backed securities. The market indicates that the Fed's interest rate hike cycle is coming to an end, with the belief that the central bank will be forced to cut rates as soon as 2023. However, the Fed continues to insist that it plans to raise rates above 5% and leave them high and financial conditions tight for a long time. The 2-year Treasury yields fell to their lowest level since early October. This is the first weakening in months. Apparently, the rate cut is now embedded in the quotes of not only the federal funds rate futures market. As a consequence, the Fed will be forced to use balance sheet talk as a last resort to ensure that rates remain elevated and the dollar remains strong enough to prevent a stronger-than-acceptable Fed easing of financial conditions. The market, on the other hand, is trying to figure out how much pressure it can put on the Fed to maintain tight financial conditions. If the central bank is serious, sooner or later it will try to fight back. Otherwise, the Fed will lose control of the public discourse and won't be able to tell the markets what direction it thinks they should go. Talk of a higher overnight rate is no longer having the desired effect, so the next option for the Fed is balance. If it doesn't use that option, the markets will take it as a signal that the Fed is okay with easing financial conditions and thus gives the markets permission to continue the rally.
TVC:US02Y
by FOREXN1
7
35. A lesson on INFLATIONFolks, This is the hottest topic nowadays. Everyone is talking about it. How high will it go? When will it end? The obvious reason being solely to predict when the Fed will pivot. Lets look at the MARKET reaction to date. When 2Q GDP was announced, US02Y drop below the 50MA. This is the market saying the pivot is near. The Fed will stop hiking rates because the economy is contracting and in recession. Since then, the market has sobered up and is now anticipating a 50bps hike next month (current = 2.50% + 0.50 = 3.00%) and is hovering around 3.00%. We can see from this that the MARKET is indeed VERY OPTIMISTIC and is somewhat ignoring the recent DOT PLOT. But for us, it is best to really understand the situation correctly. This is often not found/mentioned by the MSM. Inflation is a topic best covered in mystery and not easily predictable. Or is it? Lets use some logic and common sense. INFLATION WILL END 13 MONTHS FROM THE DATE WHEN THE HIGHEST PRICE WAS RECORDED. And when we talk about price, the easiest would be to use the single most important commodity - OIL. USOIL traded at the high of $129.416 on 8 March 2022 . So regardless of what the Fed do or not do, inflation will start to normalize sometime in March 2023. Get it? For example, you may be paying $2/gallon. But because of inflation, price suddenly jump up to $5/gallon. Even if price continue to stay at $5/gallon, 13 months later, there would be no inflation as price remain the same y-o-y. It is just some statistical shitfuckery used by the policy maker to justify that things are back to normal. That is why the stock market is so 'RESILIENT' - they are just waiting for the coming happy time just a few months away. That is why the market is so bold to even ignore the DOT PLOT. Lets continue to monitor the US02Y. And when it really drops below the 50MA and below the FFR, then we might see the Fed finally capitulate to Market Demand. Good luck. P/S : As always, do not just believe what I say. Use your common sense. 1) Do not forget beside the FFR, there is also a Balance Sheet Reduction going on. This will impact liquidity and based on latest Fed talk, they are indeed serious about this this time around. 2) There is still a war going on in Ukraine and this has direct impact to EURUSD we are trading. Regardless of pivot or not, the situation in Euro Zone is quite dire. Germany is collapsing and without GAS, they are looking at a DEEP and LONG recession in the coming months.
TVC:US02Y
by i_am_siew
2
US02Y: Falling Wedge, Sign of Stronger Dollar Ahead?Hello Fellow Trader/Investor! Price Action Analysis US Government Bonds 2 Years Yield is moving above EMA90, indicating a bullish trend. The Falling Wedge Pattern is a bullish continuation pattern confirmed by the recent breakout. The MACD Indicator made a golden cross, signifying a possible upside movement to the target area. Fundamental Drives 1. The Fed does not reach the 2% Inflation Target Yet 2. Hawkish Fed Position usually makes the bond yields potentially increase, which will cause a bullish dollar outlook. All other explanations are presented on the chart. The roadmap will be invalid after reaching the target/ support area. "Disclaimer: The outlook is only for educational purposes, not a recommendation to put a long or short position on the US02Y"
TVC:US02YLong
by financialfreedomgoals101
6