The Chart is of the 2y Govt. Bond yields which is positively correlated to the CPI and to the USDJPY pair, with correlation coefficient of >0.8. This is because, inflation is directly related to debt and investment yields and Japan is the second largest US debtor. All three charts are consolidating which would mean that there's still a fog of uncertainty into the...
Buy the US/German 2y bond spread! Shd the Schatz yield itself retest the -0,72/-0,78 range again, then it will likely be an outright sell too! (pls see lower panel referring to German 2y yield)
US 2y Note yield: 1,256 % German 2y Schatz yield: -0,808 -> yes, it is still deep negative :-) Spread between the two markets are at highs, trading around 205 basis points. Reasons we all know: FED started to hike, while ECB is still sticking to its NIRP and QE policies. However this will change one day, and then the spread collapse will be quick and...
The yield found support at 1.28% (former channel resistance) yesterday and has staged a rebound to 1.33%. The major averages - 50-DMA, 100-DMA and 200-MA are all sloping upwards and nicely aligned (one below the other) suggesting the long-run view remains bullish.