Neutral dynamics of the debt market | 07 اكتوبر 2021

EURUSD trading plan:

U.S. Treasury long-dated yields fell from more than three-month peaks. The fall in long-end rates flattened the yield curve, with the spread between two-year and 10-year yields narrowing to 121.6 basis points after rising to 127 basis points. Since the private sector jobs data (ADP), Fed fund futures, which track short-term rate expectations have priced in a 90% chance of a quarter-point hike by the Fed in November 2022. The outlook for longer-dated Treasury yields remained tilted to the upside amid optimism about U.S. growth and higher inflation expectations amid soaring energy prices. This is a neutral signal for this currency pair.

Investment idea: range 1.1535 -1.1630.