Positive dynamics of the U.S. debt market | 22 October 2021

22 October 2021, EUR/USD

Positive dynamics of the U.S. debt market

EURUSD trading plan:

U.S. Treasury yields rose as a tighter labor market pointed to a recovering economy that renewed questions about the pace of inflation and when the Federal Reserve will raise interest rates. Two key market measures of future inflation based on five-year and 10-year U.S. Treasury breakeven inflation rates jumped, hitting highs last seen in 2012. Yields on U.S. Treasuries notes also rose, with the benchmark 10-year Treasury rising 5 basis points to 1.68%. The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, was up 5.9 basis points at 0.43%. This is a positive signal for the dollar.

Investment idea: sell 1.1634 and take profit 1.1597.

David Johnson
Analyst of «FreshForex» company
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