Intraday Market Thoughts

10 2 breaking support? منحنى العوائد

by Ashraf Laidi
Jan 24, 2022 16:29

Friday's post showing a possible top in US 10 year yields goes in line with the 10-2 charts. The left-hand chart shows the deterioration in the 10-2 spread, reflecting further flattening in the yield curve. This is usually a sign of the bond market challenging the Fed's rate hike expectations. Retail traders are often advised to NOT to fight the Fed, but this does NOT APPLY for the bond market, which often fights/challenges the Fed and wins. See full explanation inside the charts. 

Click To Enlarge
10 2 breaking support? منحنى العوائد - Yield Curve 10 2 Jan 24 2022 (Chart 1)

 
 

Latest IMTs