Negative dynamics of the U.S. debt market | 04 Februari 2022

04 Februari 2022, USD/JPY

Negative dynamics of the U.S. debt market

USDJPY trading plan:

The shape of the U.S. Treasuries yield curve reveals monetary policy and economic growth expectations, and curve inversions - which happen when shorter-dated debt yields more than government bonds with longer maturities - are seen as presaging recessions, particularly in the closely followed two-year and 10-year spread. Yields of shorter-dated U.S. government bonds have been rising at a much faster pace this year than longer paper, flattening the curve on expectations of an aggressive path of interest rate hikes. Markets are still a little bit nervous of the Fed overshooting.

Investment idea: range 114.50 -115.50.


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.
David Johnson
Analyst of «FreshForex» company
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