Analysis & Comment > Bond of the Week
Back to 2016
Bond of the Week: 28 April 2016
Bond of the Week : 28 April 2016
The US 2-year Bond Yield has plotted a 'Peak' Key Day Reversal from 0.8747%. The downward dynamic has probably checked the short-term rally. A sustained push past that ceiling would be required to remove risk of a further retracement back towards the early-April floor near 0.7%.
US - The Eurodollar future encountered firm intraday support at 99.265 on 27 April. The rebound from that level has reasserted the advance from the 'Trough' Key Day Reversal low of 16 March, which arrived at the 200-day MA. Resistance is at the early-April high at 99.33, though the stronger barrier is not until the February peak at 99.39.
UK - The Long Gilt contract broke under the March low to complete short-term top during the course of the week. One notes that the decline has since slowed slightly, having reached the 200-day MA. However, a stronger up move is required to reaffirm new support in this area around 119.
Europe - There is a slight loss of momentum to the 'bull trap' pullback that followed the failed break over the prior high near 164 by the Euro 10-year Bund issue. The price has approached prior support at the March floor, at 160.81. Should that yield, the chart pattern will look rather top heavy.
Asia - Once again, the JGB future has failed to maintain the nudge to a new high. The ensuing 'bull trap' pullback is probing support at the 50-day MA. A breach will have the early-April low around 151 as the next chart target. Also, the pattern would take on a top heavy aspect.
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.