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US10Y going lower as Fed has no choice but to continue cutting.More than 1 year ago (November 7 2023, see chart below), we made a bold (for the time being) call on the U.S. Government Bonds 10YR Yield (US10Y), as against the prevailing market sentiment we gave a sell signal, right after what turned out to be a top: Today we revisit this pattern, following yesterday's Rate Cut by the Fed primarily because of their statements that instead of 4, they will only proceed to 2 more cuts in 2025. We believe this to be false and expect the Fed to quickly resume the previous outlook. The chart shows that the 1M RSI Lower Highs have are consistent with the previous Bearish Reversal on the US10Y price, similar to 2006 - 2007. We are expecting to hit the 0.382 Fibonacci retracement level at 2.100%, as the Fed's Cut Cycle will be accelerated in order to meet within 12-18 months their 2% inflation target and stabilize. For better illustration we have plotted also the U.S. Interest Rate (red trend-line), where you can clearly see that the fractal we compare to today, is right before cuts started in August 2007. Also it is a natural consequence for the US10Y to fall when rate cut cycles start, evident also in June 2019, December 2000, May 1995, May 1989 September 1984, May 1981 etc. ------------------------------------------------------------------------------- ** Please LIKE 👍, FOLLOW ✅, SHARE 🙌 and COMMENT ✍ if you enjoy this idea! Also share your ideas and charts in the comments section below! This is best way to keep it relevant, support us, keep the content here free and allow the idea to reach as many people as possible. ** ------------------------------------------------------------------------------- 💸💸💸💸💸💸 👇 👇 👇 👇 👇 👇
TVC:US10YShort
by TradingShot
12
Weekly Indicator Panel WARNED last weekend...ALL Red Flags already, as warned by my panel of leading indicators. You would see that all threshold have been triggered and are clearly red flags IF the week closes at current levels. The week has not ended, but it appears bad enough. There should be an attempt tp recover somewhat, but overall appears that Santa Claus might crash this rally this year. Furthermore, the year end and year start are keen indicators of the year ahead as well... so watch closely.
TVC:SG10YShort
by Auguraltrader
Bund: Bearish Crab Formed, Potential Head & Shoulders Breakdown FX:BUND The Bund has recently formed a bearish crab pattern on December 6th at 136.42, which triggered a pullback. It's worth noting that this level coincided with the monthly fractal resistance from August at 136.25, a key zone that could lead to a significant rejection. With the new support established at 134.38, we are now at a critical point where a head and shoulders pattern may start to develop. If this pattern completes, it could push Bund back to 132.46, marking a strong bearish move after a previous momentum surge. Key Highlights: Bearish crab pattern formed on December 6th at 136.42, triggering pullback. Testing the monthly fractal resistance at 136.25, which could provide strong resistance. New support at 134.38 acting as the neckline for a potential head and shoulders pattern. Right shoulder of the pattern still forming, but a break below 134.38 could lead to further downside. If the head and shoulders pattern completes, Bund could drop to 132.46.
FX:BUNDShort
by Andre_Cardoso
US 10Y TREASURY: expecting a 25 bps cutAs the Feds December meeting is approaching, so the market nervousness is increasing. During the previous week the 10Y US benchmark reverted back toward the 4,4% level, from 4,2% traded previously. Such a move was a reflection of market expectations that the Fed will cut interest rates by additional 25 bps on December 18th. Also, ahead of the FOMC meeting, November inflation data was published, showing 0,4% increase in November, higher from market expectation of 0,2%. Increased volatility might be expected also during the first two days of the week ahead. The current 4,4% level for 10Y US Treasuries might be its highest level for the week. As per CME FedWatch Tool, there is currently 97% odds that the Fed will cut by 25 bps. In this sense, some relaxation in yields might be expected during the week ahead.
TVC:US10Y
by XBTFX
Weekly Leading Indicator Panel warns...Reviewing the Weekly charts, especially for the leading indicators, it appears that there is a warning of downside risk imminent. SG10Y bond yield are about to break out. JNK TLT and TIP all have bearish engilfing that covers the previous gap up. Thing is, the coombined US equities chart is somewhat bullish, with a rough bearish harami at the bearish best indication. Even SOXL appears to be bullish somewhat... No action needed, but just an early warning given to set the boundaries yet again... looks like the Christmas Rally just fizzled out.
TVC:SG10Y
by Auguraltrader
10 year - 3 month yield curve has un-invertedThe past may not predict the future, but history does tend to rhyme. In the past, within 3-8 months of the 10-year/3-month yield curve un-inverting, the world was hit with: *** 9/11 in 2001 *** The Great Financial Crisis, also known as the subprime mortgage meltdown, in 2008 *** COVID-19 lockdowns in 2020 It's an odd phenomenon that we live in a time when shorter-term maturity vehicles have rewarded investors with more yield than longer-term vehicles. In this case, a 3-month US Treasury Bill commitment had been paying higher interest than a 10-year US Treasury Bond. My completely liquid bank savings account was yielding 5% APY. Why would I lock my funds up for 10 to 30 years when I could be earning more from a savings account with no term? Without getting into further details, if history continues to rhyme, we might be months away from the next major world event.
TVC:US10Y
by MrMomo177
1
US10Y - Elliott Wave AnalysisNot sure if this will happen but if it does, what does it mean ? 1. Impact on the US Dollar Strengthens the Dollar: Higher yields attract foreign investors seeking better returns, increasing demand for the US Dollar. Rising yields often coincide with expectations of tighter monetary policy by the Federal Reserve, which further boosts the dollar. 2. Impact on Gold Negative for Gold: Gold is a non-yielding asset, meaning it doesn’t pay interest or dividends. When bond yields rise, the opportunity cost of holding gold increases, making it less attractive. A rising US Dollar (driven by higher yields) also makes gold more expensive in other currencies, reducing global demand. Inflation Hedge Caveat: If rising yields are driven by inflation concerns, gold might still see some demand as a hedge, although its gains are often capped by rising yields. 3. Impact on the Stock Market General Impact: Rising yields increase borrowing costs for companies, reducing profits and potentially slowing down growth. Investors may rotate out of riskier assets like equities into safer Treasuries as yields become more attractive. Value vs. Growth: Value Stocks (e.g., banks, industrials): These may benefit from rising yields as they’re tied to economic growth and inflation expectations. Growth Stocks (e.g., tech companies): These tend to underperform because their valuations depend on future cash flows, which are discounted more heavily as yields rise. 4. Impact on Nasdaq (Tech Stocks) Negative Impact: The Nasdaq is heavily weighted toward growth and tech stocks, which are sensitive to rising yields. Higher yields increase the discount rate used to value future earnings, making high-valuation tech stocks less appealing. Example: Periods of sharply rising yields often coincide with sell-offs in the Nasdaq. 5. Impact on Emerging Markets Outflows from Emerging Markets: Rising US yields can draw capital away from emerging markets as investors seek safer and higher-yielding US assets. This can weaken emerging market currencies and lead to tighter financial conditions in those economies. 6. Broader Market Sentiment Inflation Expectations: Rising yields driven by inflation concerns can create volatility across all asset classes. Fed Policy Sensitivity: Markets may react negatively if higher yields signal faster-than-expected Fed rate hikes. Historical Context Periods of sharply rising yields (e.g., during taper tantrums or inflation scares) have often led to stronger US dollars, weaker gold prices, and volatile stock markets, with the Nasdaq typically underperforming due to its tech-heavy composition.
TVC:US10YLong
by tigo2020
2
US 10Y TREASURY: inflation data aheadThe NFP data were in the center of market attention during the previous week. Analysts perceived posted data as “not too hot and not too cold”. Indeed, they were somewhere in between. The US economy added 227K new jobs, which was higher from market estimate, but at the same time the unemployment rate reached 4,2%, a modest increase from 4,1% posted previously. Regardless of these mixed data, CME FedWatch Tool is showing 85% odds for a 25 bps rate cut in December. It should be taken into account that the US inflation data is set to be released during the week ahead, which will bring another layer to market expectations. The 10Y US Treasury benchmark yields were traded to the downside during the previous week. For the second week in a row yields are gradually taking the down course. During the previous week, the 10Y benchmark was closed at the level of 4,17%. Next week, the US November inflation data will be posted, however, investors are currently positioning for the FOMC meeting, scheduled for December 17-18th.
TVC:US10Y
by XBTFX
US10Y Government Bond Yield Could Test 3.8% SoonUS10Y Government Bond Yield Could Test 3.8% Soon The price is showing the completion of a complex pattern that could push the price further. A very strong resistance zone is found near 4.16%, which was just broken. Additionally, overall market expectations regarding a potential Federal Reserve rate cut during the December meeting by 25 basis points or higher speculation may push the US10Y Government Bond Yield down even more. Let's see how the price unfolds during the coming days. You may find more details in the chart! Thank you and Good Luck! ❤️PS: Please support with a like or comment if you find this analysis useful for your trading day❤️
TVC:US10YShort
by KlejdiCuni
5
US10Y: Hit the 1D MA50. See how to trade if it breaks.The U.S. Government Bonds 10 YR Yield has turned bearish on its 1D technical outlook (RSI = 42.524, MACD = 0.005, ADX = 44.101) and since last Friday it has been trading on the 1D MA50. That was the first test of this trendline in 2 months and even though yesterday's candle closed under it, we don't have a decisive breakout yet. A candle considerably below it, should test the 1D MA100. This is part of the larger Channel Down and a crossing under the 1D MA100 validates that this is the new bearish wave. The 1D RSI already is inside a mirror Channel Down pattern as April 15th-May 15th. Our perspective is long term bearish in any case but if the 1D MA100 holds, you may trade within the Channel Down and the circles for short term buy and sell entries. Our long term target is raised a little higher on the 1.1 Fibonacci extension (TP = 3.500%). See how our prior idea has worked out: ## If you like our free content follow our profile to get more daily ideas. ## ## Comments and likes are greatly appreciated. ##
TVC:US10YShort
by InvestingScope
Treasuries to Bitcoin reverse coorelationWhile Bitcoin and crypto are new to the game as opposed to classic assets like bonds, we can see in 2020 there was a specific and rather chilling hedge against the market. We know if the inversion of the short and long tail yields invert from short > long rates back to short < long, a timer is activated in the shifting of treasuries from short to long in a stabilization to normality, however observing the US02Y/US10Y back testing will show us that a recession is months away after the values return to short rates being less than long rates. Why is that? Why does the inversion track recession so accurately? Well it's based on intention of investors, many who are insiders. Preparing for a swap in rates can mean that long term stability is returning so worth the interest risk over the time delta, while short term rates reduce in value due to uncertainty raising in the short term. Follow the money, and not the mouths. We have seen many times mouths speak one way and money flows the other... Topping off this crypto inclusion only shows a new player in this dance of rates. the complete disconnect and reverse correlation at the moment indicated on the chart on Bitcoin shows that when we have a significant drop in rate adjustments (ie: feeling comfortable about future treasuries vs feeling nervous about near term treasuries) signals crypto as a hedge against the commonly seen recessive nature of un-inversion.
TVC:US02Y
by SuperScholarXYZ