Speculators' net bearish bets on U.S. Treasury | 10 January 2022

10 January 2022, EUR/USD

Speculators' net bearish bets on U.S. Treasury

EURUSD trading plan:

CFTC data further showed that net bullish bets on U.S. 2-year Treasury note futures fell to 41,999 contracts, their smallest net long position since early December. The week before, net longs on 2-year note futures soared to 87,804 contracts, their largest in more than five years. U.S. 2-year notes also mirror Fed rate view expectations. U.S. Treasury yields surged this week following the release of the of the Fed minutes on Wednesday, which suggested an earlier-than-expected rate hike and the possibility that the Fed may reduce its balance sooner than many anticipated. Fed funds futures imply an 80% chance of a 25-basis point tightening by March, and more than three rate hikes by the end of the year.

Investment idea: buy 1.1315 and take profit 1.1362.

David Johnson
Analyst of «FreshForex» company
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