WILL YIELDS DROP? CRAZY MOVES!

Hey tradomaniacs,

The market is seriously playing games here! 🙈

The blast of yields can not be sustainable as this is going to be a be a thorn in Powells flesh.

Why is that? Basically because rising yields will "raise the price of" debts!

First of all, this is a BET against the FED and looks like TEST.
As often explained, YIELDS are currently rising due to the inflation-worries.

BUT here is the thing:

In his last testimonial Jerome Powell said the FED is not even close to its inflation-goal of 2%❗️


So you may ask yourself, when will the YIELDS stop rising?

Well there are two options:

1️⃣ Yield-Curve-Controle with Bond-Buying-Purchases
2️⃣ To back down and change the current policy

Yield-Curve-Controle of long-term-yields would be an option but probably not a solution as the FED would PRINT money in order to buy bonds 👉 More inflation 👉 More worries!

Will 10-Year-Yields reject off the resistance and correct?

We have to keep in mind that gamblers can bet on rising yields, which will likely take some of their profits.
This could cause a retracement, but fundamentally I can`t really say whether the yields will continue to rise or not.

One thing is for sure:

Rising yields are showing cashflow out of equities into bonds and put stocks under pressure, especially NASDAQ100 and tec-stocks.

If equities fall due to rising yields then US-DOLLAR will have a lot of support to change its trend❗️

Today we have got very nice pullbacks for almost all pairs!

If we see profit-saves in YIELDS, in other words a correction, then we might see again soem risk-on and great opportunities to follow the trends!

Very interesting, but also a very tricky situation for Forex-traders.🙏


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