While the FOMC meeting this week was quite hawkish, it failed to trigger large moves on the market. Fed gave the most clear hint on when tapering may start and when it may end but stock markets and US bonds did not see an immediate, large reaction. This changed yesterday with TNOTE moving lower, a move that was supported by Bank of England's hawkish hold. UK bonds experienced a sell-off and bonds from Europe and the United States followed.
TNOTE pulled back from the swing area marked with the 50% retracement of the upward move launched in March 2021 yesterday. A steep drop has pushed the price below the 61.8% retracement as well and TNOTE now trades at the lowest levels since late-June. Interestingly, yesterday's move was not accompanied by strengthening of the US dollar (USDIDX, blue overlay on the chart below) , which is usually the case during US bond sell-offs. The near-term support zone to watch can be found ranging between 131.60 and 78.6% retracement (131.75).
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appNote that there is number of speeches from Fed members scheduled for today therefore USD and US bonds may experience elevated volatility in the afternoon.
Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
