US Bond Yields At Median lineLooking at the 30 years. There seems to be a lot of movement on the bond market that the financial media has been totally ignoring!
The bond yields reached a high of 3.46 November 2 2018!
These heights were broken when the price broke and Closed below the 3.4 level
The current yield is showing an uptrend. The uptrend is an extension of the Fibonacci area.
Bondspread
Warning- Inverted Yield Curve likelyUS10
US02
This may not look like something to watch and you may not know about it. Only about 2% of investors understand it, however 98% of institutional traders (the “smart money”) watch it like the World Cup finals. Its the 10 year treasury yield to the 2 Year treasury yield ratio/spread.
Bottomline: If it goes negative (hits the dotted yellow line) = Inverted Yield Curve = BAD for Stocks and GOOD for Bonds.. I’d reevaluate everything and have stop losses for every trade.
Side note: I have no idea what it means for crypto because bitcoin did not exist the last time yield curve went inverted late 2007.
AUDUSD Gains Ground with Soft USDFinally, AUDUSD have started to regain its ground after most investors have swayed much stress over the retaliatory action s of China against the additional US trade tariff imposed by President Trump.
The same manner that US equities have continued its pace to record levels after a minor corrective move led by the triple digit climb of the #DOW above 26200. Meanwhile, this is also against a backdrop from US 10 year treasury yields that has posted above 3.00% in the US session. Paying close attention to the price movement & market behavior of the USD Index #DXY, Bond spread between US & Germany and the #EURO and #CABLE. As we draw closer towards the end of the third quarter and into the last quarter trading of the year.
The #AUDUSD price currently at 0.7230 is actually half way through its initial objective that still needs to build more momentum when it passes through above the 0.7280-0.7350. A clear objective of over 200 pips from its registered low at 0.7085. While the technical perspective which we presented from the previous overlay chart can now justify that the bullish Gartley price pattern once completed would provide the final confirmation for a bounce.
This maybe encouraging for swing traders, on the contrary the 2nd objective may still prove to be some distance ahead. Which could easily result similarly to a 'dead cat bounce' if prices would not be accompanied with substantial volumes that would drive it past the 2nd objective. For now the current price swing higher to these levels are good. Especially, when the Australian Dollar got some additional support from their previous strong job data.
The Yield Curve Flattens and Altcoins RipAs the markets price in the next interest rate hike by the Federal Reserve, we see the spread between the 30 year and 2 year US treasuries continue to flatten. It is probably not coincidence that peaks in the Altcoin Index match up with with relative bottoms (especially recently) in the treasury spread.
Also, although this is somewhat due to the Segwit2x drama this weekend, observe how the Altcoin Index has really skyrocketed over the past couple days. This may indicate some cryptocurrency adoption from 'smart money', though many establishment figureheads have publicly rebuked cryptos.
If you're interested in the Kovach Altcoin Index or the Crypto Spread Indicator, among other tools, please check out quantguy.net