US 10-year yields grind to a fresh daily high and dollar continues slide

Not the usual correlation

This week’s theme has been lower yields and a higher dollar but it started unwinding yesterday and that has continued.

US 10-year yields are now up 7.2 bps to 1.36% today. That’s 11 bps above yesterday’s lows, which coincided with the 200-day moving average.

We’re now testing the post-Fed low, which is now resistance.

Overall, I have go back to early Thursday when I highlighted a note from Wells Fargo that called bulls**t on the bond move. I think market participants desperately tried to fit the macro picture to price action in bonds this week but couldn’t get there.

Ultimately, I think that failure will underscore the reversal in both yields and the dollar. It’s tough to say that’s a high-conviction fall though. It’s June and it’s tough to feel on balance after what happened this week.

Invest in yourself. See our forex education hub.

News

Articles You May Like

Gold records its worst weekly fall this year on hawkish Fed minutes
USDCHF buyers are making a play. Can they keep the upside momentum going.
IC Markets Review: Tight Spreads, Reliable Execution, and Robust Trading Platforms
NZDUSD trades in a narrow trading range this week. Will the new week lead to a break?
Forexlive Americas FX news wrap 24 May; USD moves higher. Nasdaq &S&P gain for 5th week

Leave a Reply

Your email address will not be published. Required fields are marked *