Falling U.S dollar Keeps Benchmark 10-year Note at Lows, Short Positions Suggested
U.S government debt prices skidded on Tuesday as the U.S dollar retreated while global stocks ticked higher. Yields on the 10-year note mounted up to 1.5594 percent from 1.54 percent on Monday owing to the depreciation of the greenback which raised hedging costs for investors holding other currencies. Markets are waiting for Federal Reserve Chair Janet Yellen to speak at this week’s Jackson Hole meeting for more guideline over the Fed’s next rate hike.
Fed fund futures implied a probability of a rate hike in September at only around 24 percent, even after some Fed official’s “warning” of a possible move next month. Besides, robust equity markets also weakened the attractiveness of a safe-haven asset like U.S Treasuries.
Sell Stop at 132.07, Take profit at 131.90, Stop loss at 132.20