Has the bond market bottomed?
The big question everyone is asking today (and yesterday) is "Is the bottom in the bond market?"
So far, following the FOMC decision yesterday, the market seems to think so. And following the jobs report (Non-Farm Payroll number) tomorrow, we will probably have a good idea if the bounce is sustainable, or we are about ready to resume the downtrend, and yields back towards 5%. Technically, we are reaching the channel that has kept the 10yr pressured since spring of 2023. However, a break of the 50dma and channel resistance at 108'02 may be the trigger that actually squeezes the market much higher, sending yields falling at a rapid rate. We'd expect that on a "weak" jobs report and the US Dollar to fall precipitously from here. However, we must keep in mind that the headline number has come in higher than expected 7 of the last 10 reports in 2023. So, a weak NFP report is not a given!
Any reviews, news, research, analysis, prices or other information contained on this website is provided as general market commentary, does not constitute investment advice and may undergo changes from time to time. Trading the Financial and Currency Markets on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as to your favor. Before entering trading Financial and Currency Markets, you should carefully consider your investment objectives, level of experience and risk appetite. There is a possibility that you could sustain a loss of some or more of your initial investment and therefore you should not invest money which you cannot afford to lose. You should be aware of all the risks associated with Financial and Currency Markets trading, and in case you have any doubt, rather seek advice from an independent financial advisor. FOREXANALYTIX LLC, its owners, employees, agents or affiliates do not give investment advice, therefore FOREXANALYTIX LLC assumes no liability for any loss or damage, including without limitation to, any loss of profit, which may be suffered directly or indirectly from use of or reliance on such information. We strongly encourage consultation with a licensed representative or financial advisor regarding any particular investment or use of any investment strategy. As part of our service we provide “Patterns in Play” (abbreviated as “P.I.P.’s”). These PiPs are derived from certain clearly defined patterns that the team members identify from their analysis. Each PiP is indicated with its corresponding theoretical entry, target and invalidation levels. Please note that these are not trade recommendations; they are simply our team’s interpretation of these patterns and their theoretical levels. Any information or material contained on this website including, but not limited to, its design, layout, look, appearance and graphics is owned by or licensed to FOREXANALYTIX LLC. Reproduction is prohibited without FOREX ANALYTIX LLC prior license in writing.
Recommended Content
Editors’ Picks
AUD/USD looks at the Fed for near-term direction
AUD/USD managed well to maintain its positive bias on Tuesday despite the decent recovery in the Greenback as market participants largely anticipated the start of the Fed’s easing cycle on Wednesday.
EUR/USD keeps its bullish stance unchanged
Despite Tuesday’s corrective decline, EUR/USD remained poised to extend its upside impulse in the short term, as investors continued to expect the Fed to reduce its interest rates by 50 bps at its September 18 meeting.
Gold under mild pressure near $2,560
Gold stays under modest bearish pressure on Tuesday and trades below $2,580. The benchmark 10-year US Treasury bond yield holds steady above 3.6% ahead of the Fed's policy announcements on Wednesday, making it difficult for XAU/USD to gather bullish momentum.
XRP eyes return above $0.60 with pro-crypto attorney lending support to Ripple investors for their losses
Ripple (XRP) holds steady above $0.5800, an important support level for the asset on Tuesday. The altcoin gears up for recovery likely in response to positive developments in the project. XRP trades at $0.5860 at the time of writing.
Why the Fed is set to cut interest rates and what does that mean Premium
The Fed is expected to cut interest rates on Wednesday. This is a crucial event as it directly affects families and businesses in the United States (US) – but also abroad given the importance of the US as the world’s largest economy.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.