What can we deduce from the performance of USD dollar index and US 10 Year Treasury Yields? I notice that there is a signs of decoupling, where most financial investment masters quote USD is strengthening having the correlated relationship with the US 10 Year Treasury Yields performance. Divergence is seen with USD dollar index at its peak and is poised to see a sell off.with price target medium term to long term of 82.50 with US 10 Year Treasury Yields is rallying with a bullish chart formation of a saucer / rounding bottom with price target of 4%, 5% and 8% respectively.All time high for US 10 Year Treasury Yields register an all time high of 15.82% in September 1981 and all time low of 1.321% in July 2016 and interest rate stay low for a period of 27 years already.There are 2 possibilities - 1) Expectations of real interest rate rise with US 10 Year Treasury Note sell off in price and yields spike probably referring to Russia and China are selling the US 10 Year Treasury note, couple with USD still in a downtrend bias with a target of 80s level.2) Another scenario is the bullish in US 10 Year Treasury Yield is a fake move and could see resume uptrend in price and yields fall into new Low correlate to USD downtrend bias.
With the US 10 Year Treasury Yields is set to rally with more upside potential with a target of 3.5 % as an indication of the danger zone and advise caution to exit the financial markets where CASH is king , there are concerns by many Financial Invesment Analyst and Master that the financial markets will experience a bear market to take place. It will also have an adverse impact on the REITs (Real Estate Investment Trusts) and the property market could see more downside pressure in price dampening any form of speculation and investment where mortgage loan are expected to rise and borrowers have to pay more interest.https://www.cnbc.com/quotes/?symbol=US10Y
https://www.macrotrends.net/2016/10-year-treasury-bond-rate-yield-chart
Disclaimer: All news, information and charts shared is purely by my research and personal views only. This is not a trading recommendation or advice but on the basis of sharing information and educating the investment community. Different traders and investors adopt different trading strategies and risk management approach hence if in doubt please approach or seek clarifications with your Financial Adviser, Broker and Banker.
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