📉Bond sell-off escalates❗

2:44 PM March 25, 2022

US10-year Treasury yield jumped above 2.46%

In anticipation of the upcoming policy tightening cycle, the  global bond market resumed downward move following recent several hawkish comments from FED members which, in turn, led markets to bet on a higher probability of the Fed lifting rates by 50 rather than 25 basis points during its next meeting in May. Major central banks have tried to contain inflation, which is currently hitting record levels in Europe and a 40-year high in the US. During today's session, the yield on the US 10-year bond, which sets the tone for the cost of corporate and household debt worldwide, rose above 2.46%, a level not seen since May 2019. The yield on 10-year German Bunds, a benchmark for Europe, jumped to 0.56%, the highest since May 2018, while French 10-year yields remained above 1%.

TNOTE resumed downward move and broke below major support at 122.50 which coincides with 78.6% Fibonacci retracement of the upward wave launched in October 2018. If current sentiment prevails, downward move may accelerate towards 117.50. Source: xStation5

Start investing today or test a free demo

Open real account TRY DEMO Download mobile app Download mobile app
Xtb logo

Join over 847 000 XTB Group Clients from around the world

Forex and CFDs are leveraged products and can result in losses that exceed your deposits. Please make sure you fully understand all risks.
This page was not created for investors residing in Brazil. This brokerage is not authorized by the Comissão de Valores Mobiliários (CVM) or the Brazilian Central Bank (BCB). The content of this page should not be characterized as an investment offer in Brazil or for investors residing in that country.

Losses can exceed deposits