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