The bond market is in focus as yields edge decrease

After the FOMC assembly determination yesterday, 10-year yields within the US raced to a excessive of four.59% however that did not final lengthy. We’re now seeing yields fall again rapidly to below four.51% once more. And that’s beginning to invite a take a look at of a key neckline on the chart, as seen above.

Bonds had been supplied fairly strongly to begin the yr as broader markets had been fearing Trump’s insurance policies forward of his inauguration. However with tariff fears receding, we’re beginning to see issues flip round a good bit.

I might be watching the neckline close to four.50% fairly intently as we glance to finish the week. Even with none main headlines to affect the narrative, a technical breakdown right here might supply merchants one thing to work with within the meantime.

In flip, this can even have a say in how USD/JPY performs out with the pair nonetheless toying with a possible break beneath 155.00 this week.

The drop fell below the determine degree earlier within the week however rebounded as Trump floated tariffs once more on Tuesday right here. The bounce coincided with a rebound off the 50.zero Fib retracement degree at 153.75, so that may nonetheless be a key technical assist degree to be careful for earlier than the week ends.

This text was written by Justin Low at www.ubaidahsan.com.



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