Interest Rates are Moving Again - Breaking Above Recent High
2 year, 5 year, 10 year and 30 year yield are all showing a similar characteristic:
· Low established in 2020
· Major support trend started forming since then
· Seem to have completed its retracement with a double-bottom
· Resuming on its major support trend
· Target to break above its recent all-time high set on Oct 22
Chart illustrated a 10 year yield futures market.
Interest rates and yield moves in tandem, why?
Borrowers (for eg. home owners with loan) take reference from interest rates and lenders (or investors) take reference on the yield. Interest rates and yield moves in tandem.
Meaning if yields are indicating an upward momentum driven by mainly the investors, interest rates will soon to follow or vice-versa.
Though interest rates are making a U-turn from its recent low and breaking above its all-time high.
Are you seeing opportunity or feeling stress with more volatility ahead?
My strategy:
• Have lesser long-term hold on stocks
• Trading into the indices - Sell into strength and trading into the volatility
• Investing into commodities related asset
• Buying into dip(s) on yield futures
CME Micro Years Yield Futures
Minimum fluctuation
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 tradingview.com/gopro/
· Low established in 2020
· Major support trend started forming since then
· Seem to have completed its retracement with a double-bottom
· Resuming on its major support trend
· Target to break above its recent all-time high set on Oct 22
Chart illustrated a 10 year yield futures market.
Interest rates and yield moves in tandem, why?
Borrowers (for eg. home owners with loan) take reference from interest rates and lenders (or investors) take reference on the yield. Interest rates and yield moves in tandem.
Meaning if yields are indicating an upward momentum driven by mainly the investors, interest rates will soon to follow or vice-versa.
Though interest rates are making a U-turn from its recent low and breaking above its all-time high.
Are you seeing opportunity or feeling stress with more volatility ahead?
My strategy:
• Have lesser long-term hold on stocks
• Trading into the indices - Sell into strength and trading into the volatility
• Investing into commodities related asset
• Buying into dip(s) on yield futures
CME Micro Years Yield Futures
Minimum fluctuation
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 tradingview.com/gopro/
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Disclaimer
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