Stocks are holding support from last week during the Russia-Ukraine peace talks, while USD is trading slightly lower.
Bunds are coming down from a triangle, now breaking sharply into wave C as ECB turns slightly more hawkish. Ideally, market is now in a five-wave decline within wave C headed to 160/163 projected area.
10Y US Notes are still trading at the lows and it looks like it’s still unfolding five waves of decline from 2021 highs, now moving within an extended 5th wave with room down to 125 – 124 area. Keep in mind that a rise back towards above 130’00 is needed to confirm a bullish reversal turn.
We see strong resistance on US yields at 2%.
Gregor is based in Slovenia and has been involved in markets since 2003. He is the owner of Ew-Forecast, but before that, he was working for Capital Forex Group and TheLFB.com.