Double Top in Bonds Signaling Bottom for Interest Rates?
If the U.S. Treasury Bond market finally tops out it will likely mean longer-term rates have bottomed over the near term. As Treasury prices rallied sharply over the last 6-months U.S. interest rates ground lower and the financial markets focused on across the board easing by the U.S. Fed, and Treasury, who were reported to be outright buyers of 10-year T-Notes to insure low rates.
While today’s sell-off did some short-term technical damage on the Daily chart it’s likely prices would have to start to roll over on a weekly basis before currency traders take the U.S. interest-rate uptick seriously.
Continued lower prices in U.S. Treasuries would likely open the door for a move on the April highs for U.S. stock indices. It is this hint of lower risk in the finanicals which for now is putting a bid in the Euro and the Aussie.
Jay Norris
Jay Norris is the author of Mastering the Currency Market, McGraw-Hill, 2009 which is the text book for the intermediate level trading course offered though Trading-U.com see: Trading Courses Jay’s second book Mastering Trade Selection and Management, McGraw-Hill will be in book stores in 2011
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