U.S. Treasury yields fell from multi-year highs | 24 Octubre 2022

24 Octubre 2022, EUR/USD

U.S. Treasury yields fell from multi-year highs

EURUSD trading plan:

U.S. Treasury yields fell from multi-year highs after a report suggesting the Federal Reserve is likely to debate in two weeks whether to signal plans for a smaller interest rate hike in December. The market is pricing in a 75 basis-point hike when Fed policymakers meet on Nov. 1-2, but the U.S. central bank is divided on whether they hike another 75 bps in December or reduce the pace of their tightening to 50 bps. The yield on the benchmark 10-year Treasury hit 4.33% earlier, the highest since November 2007. The yield last fell 1.8 basis points to 4.20%. The two-year U.S. Treasury yield, which typically reflects interest rate expectations, surged to 4.64%, the highest since August 2007. It was last 12.5 bps lower at 4.48%. This is a negative signal for the dollar.

Investment idea: buy 0.9804 and take profit 0.9880.

David Johnson
Analyst of «FreshForex» company
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