The DXY and Yields are Set up to Make a Midday ReversalThe DXY and the 30 Year Yield have been on the decline for most of the day but are now showing signs of reversing back up at the PCZ of a Bullish Bat and a Bullish Shark in the form of MACD Bullish Divergence and PPO Confirmation, respectively.
When these two start to rise again it is very likely that the QQQ start to continue down as it is trading at the PCZ of a Bearish Deep Crab and has formed Potential MACD Hidden Bearish Divergence and if it starts to go down it will also give us Bearish PPO Confirmation which from there may result in a fast move down to make a lower low.
All of this will likely be triggered by whatever the Fed has to say today.
US30Y trade ideas
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Table of Contents
What Is a Bond?
Issuers
How Bonds Work
Characteristics
Categories
Varieties
How Bonds Are Priced
Bond Prices and Interest Rates
Yield-to-Maturity (YTM)
Example
FAQs
INVESTING
Bond: Financial Meaning With Examples and How They Are Priced
By JASON FERNANDO Updated March 09, 2023
Reviewed by CHIP STAPLETON
Fact checked by KATHARINE BEER
What Is a Bond?
A bond is a fixed-income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental). A bond could be thought of as an I.O.U. between the lender and borrower that includes the details of the loan and its payments. Bonds are used by companies, municipalities, states, and sovereign governments to finance projects and operations. Owners of bonds are debtholders, or creditors, of the issuer.
our updated Terms of Service.
US Government Bonds 30YR Yeld (US30Y)Supply Shocks are event that tends to increase prices and at the same time slow down economic growth, making production more expensive and less profitable. Paul Volker raised rates from 11% to 21.5% in two years. Today the rate increase went from 0.25% to 4.40%.
Which of the two target will be achieved?
$US30Y - YIELD GOING HIGHER (REACCUMULATION)Bill Hackman is right, yields are going higher!
There have been discussions as to where the yield is going from here. We believe they are going higher based on the the current re-accumulation schematic.
This chart will break out and it's not a bull trap.
We could see 5.5%-6.5% rates.
NOT-FINANCIAL-ADVICE
Most banks are below March crisis level, what's happening?We saw an improvement in the CPI numbers at 3%, but the PCE number is what Fed is concerned with as it is still lingering around its high point.
Out of the approximately 4,000 banks in the United States, it seems like JP Morgan, among these top 7 banks we are seeing here, is the only bank that has climbed back up from the March banking crisis. The rest are still well below their March levels.
If interest rate continues to rise, will that trigger another banking crisis?
Some reference for traders:
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
0.001 Index points (1/10th basis point per annum) = $1.00
Disclaimer:
• What presented here is not a recommendation, please consult your licensed broker.
• Our mission is to create lateral thinking skills for every investor and trader, knowing when to take a calculated risk with market uncertainty and a bolder risk when opportunity arises.
CME Real-time Market Data help identify trading set-ups in real-time and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com
20 Reasons for sell US30 years Yield 🔆MULTI-TIME FRAME TOP-DOWN ANALYSIS OVERVIEW☀️
1:✨Eagle eye: Since 1987, the market has been continuously declining, reaching its valid low in 2020 and confirming the lows in 2022. This is the first valid low in 35 years.
2:📆Monthly: The market is undergoing a change of character from bearish to bullish after 35 years. However, the high has not been confirmed yet. There is a high chance that the price will make a corrective move to confirm the highs. Over the last 8 months, the market has been in a sideways phase, forming an asymmetrical triangle pattern. It is most likely to break to the downside to complete the move and form a valid high. We can also observe significant demand in the same area.
3:📅Weekly: The overall trend is clear and upward without a valid high. The current market is in a full consolidation phase, creating three higher highs (H3) and almost three lower lows (L3) during the consolidation period, narrowing the price range. A breakout in either direction will confirm the next move, but the bias seems to be on the bearish side. Let's wait and see.
4:🕛Daily: A valid high has been formed with a proper valid low, and the third step has created a higher low (HL), indicating potential downside movements.
😇7 Dimension analysis
🟢 analysis time frame: Daily
5: 1 Price Structure: Bullish
6: 2 Pattern Candle Chart: More than 60% of sessions close to the downside, and all downward sessions show strong bearish closings. An inverted head and shoulders pattern has also formed.
7: 3 Volume:
8: 4 Momentum UNCONVENTIONAL RSI: Sideways for a long time.
9: 5 Volatility measure Bollinger Bands: We are experiencing a tight squeeze, indicating that all volatility has dried up. The squeeze breakout will play a major role in the coming days. Let's watch and wait for the breakout below the lower Bollinger Band for confirmation.
10: 6 Strength ADX: Sideways.
11: 7 Sentiment ROC:
✔️ Entry Time Frame: Daily
12: Entry TF Structure: Bullish
13: Entry Move: Corrective
14: Support Resistance Base: Monthly resistance trendline and daily resistance trendline.
15: FIB: Trigger event also activated.
☑️ Final comments: Sell at the squeeze breakout.
16: 💡Decision: Seeking a sell position.
17: 🚀Entry: 3.78
18: ✋Stop Loss: 4.07
19: 🎯Take Profit: 3.1
20: 😊Risk to Reward Ratio: 1:3
🕛 Expected Duration: 30 days
30 year yield: Bullish as everThe long end yields have been climbing recently and many stock market participants are not recognizing this.
The long end yields market may be signaling to us that inflation is going to be entrenched longer than what mainstream experts are calling for.
On a technical basis the 30 year has now recaptured all the key daily moving averages and looks primed to head higher.
Usd 30y bond AND DXY Bearish pressure analysis30 years bond shows weakness on the chart while Dollars index is showing a green bar daily divergence,
Most assets are having a green bars the 31st March will that stay the same till we all go in march
Or take profit and first quarter profit taking will occurr?
Most assets are above their 50% from last bottom
only the Indexes are currently sitting on a +15% from last bottom
This is not a trading advice
DYOR
✅US30 BEARISH BREAKOUT|SHORT🔥
✅US30 broke the local rising
Support line and the breakout
Is confirmed because the
4H candle closed below the line
So I am locally expecting a
Move down(after potential
pullback and retest of the broken support)
Towards the target below
Around the 96'16'0 area
SHORT🔥
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Time to buy short duration treasury bonds?The Fed funds rate is higher than the 30 year treasury interest rate.
The last time that happened was in 2000 and 2008.
What happened back then was that the stock market and the 2 year treasury interest rate both dropped significantly.
Will history repeat itself?
Weekend Update: Bond yields to move higherI received a request to update this chart. Thank you @Braeden2
The US30Y held it's wave 4 bottom in the .382% area of wave 3. The last time I posted this chart we had not yet embarked on our 5-wave pattern higher in what I'm counting as a wave 5. Today we see we have a wave 1 and 2 in place. Additionally, you'll notice how our recent wave 4 structure alternates with our previous wave 2 structure. We should have been expecting wave 4 to be deep and quick, were as our wave appears shallow and long. That is precisely what occurred.
From here I would expect within the next month to begin to clearly subdivide in our wave 3 of 5 and target yields in the 4.294% to 4.529%. This would be for our wave 3. Upon that happening we'll need a 4 and then the ultimate destination for this structure is in the target box for wave 5.
I've enjoyed the ongoing conversations in Trader-World about who is right?...The bond market or the Fed? I don't follow bonds closely, nor have I ever traded them, therefore I don't what constitutes victory for bonds or The Fed.
But I will pose this question to those reading this...what does 4.895% yield on the 30y mean? Who wins, Bonds, The Fed, or both?
Best to all,
Chris
Long US 5s30 Yield CurveThe US Government Treasury 5Y vs the US Government Treasury 30Y is now back above inverted levels and will continue this path as the FOMC hawkish rhetoric and major policy error will drive the US into a recession this year. It is in our opinion that this trade will move from inversion to +100bp as the FOMC pivots, equity markets falter and the FOMC stops their QT and stops Mortgage Back Securities and US Treasury roll offs. In a fiat fractional reserve system the current set up requires continued fiat printing or QE in order to keep asset prices higher. Also inflation is transitory and stemmed from the fiscal direct payment stimulus post Covid. We will see wage pressure come down, debt service go up and a tighter economic environment. All of this is telegraphed already in leading economic indicators. We believe this trade has a better than 5 to 1 payoff structure, risking -25bp to make 125bp.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS- Trading is risky and may involve leverage, Magnelibra or any of its affiliates are not suggesting in any way to guarantee any profits or against any future losses. Trading should be done by well capitalized and individuals well versed in quantifying risk.
Micro Drift Patterns One of the more powerful but under-appreciated categories of patterns are very short term drift patterns in strongly trending markets. Flags, pennants and small lateral trading ranges can all fall into this category. The patterns are fractal, that is, they appear across all time frames.
I find small multi drift patterns invaluable. First, they are ubiquitous. They appear in virtually all trends and time frames. Second, their completion affirms that underlying trend remains intact. Finally, the manner in which they develop, for instance, the slope, extent and volume of the counter trend move can all offer clues as to the underlying strength of the trend.
Most strong trends unfold in a push - drift - push pattern, sprinting quickly in the direction of the trend, accruing a short term overbought or oversold, and then drifting counter to the sprint. As these patterns "drift" against the prevailing trend, they alleviate the short term overbought or oversold condition that accrued during the sprint. You can think of the drift as a "pause that refreshes."
It is important that the market DRIFT. The best examples contain overlapping price ranges (in whatever perspective you are working in) and don't typically retrace much of the prior sprint. Volume should generally decline throughout the pattern, particularly if the pattern builds over 5-10 periods. The best examples have substantial range overlap from day to day.
The classic literature requires a sharp move, or a flag pole, for these patterns to fly from, a decline in volume as the pattern builds and that the pattern last no more than 10-15 bars. In my experience, finding drift patterns that fill all these "requirements'' is difficult. My personal approach minimizes the requirements. As long as the pattern occurs after a decent thrust (I prefer the thrust to go to new high or low ground) and then drifts against the prevailing trend, I can use it to develop either a fresh entry to the prevailing trend or simply as a validation of the underlying trend.
Importantly, the pattern is typically better defined in the chart of one perspective lower. For instance, drift patterns in the weekly chart can be better seen on the daily chart, and drift patterns on the daily, in the hourly.
And finally, many of the topics and techniques discussed in this post are part of the CMT Associations Chartered Market Technician’s curriculum.
Good Trading:
Stewart Taylor, CMT
Chartered Market Technician
Taylor Financial Communications
Shared content and posted charts are intended to be used for informational and educational purposes only. The CMT Association does not offer, and this information shall not be understood or construed as, financial advice or investment recommendations. The information provided is not a substitute for advice from an investment professional. The CMT Association does not accept liability for any financial loss or damage our audience may incur.
Interest rate up to at least 6.5% in 2023, why?The Fed chairman has given the market a very important clue on 13 Dec 22.
At what level will he consider an interest rate cut?
He said “I wouldn't see us considering rate cuts until the committee is confident that inflation is moving down to 2% in a sustained way,” meaning only if CPI is heading nearing 2% then it is hopeful to see a rate cut.
Market consensus for CPI to range between 5% to 8..9% for this year. If this is true, the Fed is likely to continue to hike the rate moderately at 0.25% in each meeting just to bring inflation down.
I am seeing this as the best case scenario.
Today’s content:
Strategy in an inflationary environment:
i. Commodity – Buy them
ii. Stock market – Trade them
Can inflation be hedged and can we trade into the interest rate uptrend?
CME Micro 30 Year Yield Futures
Minimum fluctuation
0.001 point = $1
0.01 point = $10
0.1 point = $100
1 point = $1,000
Disclaimer:
• What presented here is not a recommendation, please consult your licensed broker.
• Our mission is to create lateral thinking skills for every investor and trader, knowing when to take a calculated risk with market uncertainty and a bolder risk when opportunity arises.
CME Real-time Market Data help identify trading set-ups in real-time and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com
Interest rate up to at least 6.5% in 2023, why?The Fed chairman has given the market a very important clue on 13 Dec 22.
At what level will he consider an interest rate cut?
He said “I wouldn't see us considering rate cuts until the committee is confident that inflation is moving down to 2% in a sustained way,” meaning only if CPI is heading nearing 2% then it is hopeful to see a rate cut.
Market consensus for CPI to range between 5% to 8% for this year. If this is the case in 2023, the Fed is likely to continue to hike the rate moderately at 0.25% in each meeting just to bring inflation down.
I am seeing this as the best case scenario.
We can participate in hedging the market and trading the interest rate in this example.
CME Micro 30 Year Yield Futures
Minimum fluctuation
0.001 point = $1
0.01 point = $10
0.1 point = $100
1 point = $1,000
Disclaimer:
• What presented here is not a recommendation, please consult your licensed broker.
• Our mission is to create lateral thinking skills for every investor and trader, knowing when to take a calculated risk with market uncertainty and a bolder risk when opportunity arises.
CME Real-time Market Data help identify trading set-ups in real-time and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com
I hope this tutorial will be helpful, in enabling you to read into the market with greater clarity.
Stay-tune for the video version shortly, we will do more in-depth study.