The decline U.S. long-term yields | 20 December 2021

20 December 2021, USD/JPY

The decline U.S. long-term yields

USDJPY trading plan:

The decline U.S. long-term yields have baffled market participants given a backdrop of persistent inflation pressure, stronger and tighter labor market, as well the Fed's tapering of its bond buying. Since late November, U.S. 10-year yields have declined by more than 30 basis points and was last down at 1.4%. U.S. 30-year yields, meanwhile, have fallen more than 20 basis points and last traded at 1.8%. San Francisco Fed President Mary Daly, who as little as a month ago was calling for the central bank to show patience in its policy stance to allow more workers to reenter the labor market, said she would support two or three rate hikes next year, and did not rule out raising borrowing costs in March when asked about a start date.

Investment idea: buy 113.22 and take profit 113.94.

David Johnson
Analyst of «FreshForex» company
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