Analysis & Comment > Bond of the Week
Back to 2016
Bond of the Week: 26 May 2016
Bond of the Week : 26 May 2016
Early in May, the US 2-year Bond Yield successfully challenged support around the 0.7% region. The ensuing rally has since become overbought, and indeed a loss of momentum is noted. Still, the yield continues to head towards the strong mid-March barrier near 1%.
Government Bond Futures
US - The retreat from resistance at the early-April high by the 10-year Treasury Bond future has lost some impetus by prior support at the late-April low at 129.062. However, a more forceful up move would be required to remove pressure from that area; and the 100-day Moving Average. Next important chart support after that is at the March floor near 128.
UK - The Long Gilt future continues to find resistance at the February contract high at 122.32. The latest drift from that barrier probes potential support from the shorter-term MA line, though the stronger platform is near the longer-term MA line; at the April floor near 119.
Europe - The Euro 30-year Buxl instrument is finding resistance beneath the early-April peak (172.68). That said, however, a fall under support at the late-April low, at 162.14, would be required to provide evidence of top building.
Asia - In spite of yet another bounce from the 50-day MA, the 10-year JGB future continues to dither beneath resistance from the April high at 152.14. Nonetheless, a sustained breach of that MA line would be needed to damage the pattern.
To unsubscribe from this article, click here.
www.fixedincomeinvestor.co.uk is a division of Stockcube Research Ltd which is authorised and regulated by the Financial Services Authority. The research provided by Stockcube on the Website (and any other Stockcube website) is provided solely to enable investors to make their own investment decisions and does not constitute personal investment recommendations. No recommendations are made directly or indirectly by Stockcube as to the merits or suitability of any investment decision or transaction which may result directly or indirectly from having viewed the investment research on the Website or having received it by email. Investors are therefore urged to seek independent financial advice if they are in any doubt. The value of investments and the income derived from them can go down as well as up, and the investor may not get back the full amount originally invested.
Bonds, as with all investments, are subject to price volatility and in the event of a default an investor may lose some or all of his or her original investment. This site also contains references to derivatives. These are particularly high risk, high reward investment instruments and an investor may lose more than his initial margin requirement. Some foreign currency instruments are also featured and if an investor decides to acquire any investment denominated in a currency different from the his or her own, the investor should note that changes in foreign exchange rates may have an adverse effect on the value, price and income of the investment in the base currency.
None of the services provided as a result of this agreement constitutes a personal recommendation to invest from Stockcube and no service should be construed as such. For the avoidance of doubt, where the word “recommendation” is used elsewhere in these terms it does not refer to a personal recommendation, unless this is explicitly stated. The investments described by or in the services are not suitable for all investors. Investors who have any doubt about whether particular investments are suitable for them should contact an independent financial adviser.
These services do not include personal investment recommendations from Stockcube and should not be construed as such. Stockcube may, at its discretion, provide information, advice, recommendations and research to subscribers from time to time on its own initiative or advise subscribers of other services available. Stockcube will be under no obligation to provide on-going advice in relation to financial instruments covered on this website.