Negative real yields on US government bonds | 21 أغسطس 2020
21 أغسطس 2020, EUR/USD
EURUSD trading plan:
Negative real yields on US government bonds are forcing investors to increase their long positions on the European currency. The primary dealers in the government bond market expect a discount rate hike in 2024. Initially, bond market participants expected a rate hike in 2023. Laurie K. Logan, who is in charge of open market operations at the Fed, said market expectations for a rate change are logical. Such reverse of trend is negative for the dollar, as we will face a long period of negative real yields on US government bonds.
Trading recommendation: Buy 1.1860 and take profit 1.1914.
The author's opinion reflects their personal view and is not an investment recommendation. The company is not responsible for any trading results based on the provided analytical data.
