Interesting dynamics of the debt market | 03 September 2021

03 September 2021, GBP/USD

Interesting dynamics of the debt market

GBPUSD trading plan:

The U.S. Treasury on Thursday announced it will auction $58 billion of three-year notes, $38 billion of 10-year notes, and $24 billion of 30-year bonds next week. The five-year note yield, which is more sensitive to intermediate interest rate hikes, was last down less than a basis point at 0.77%. A closely watched part of the yield curve that measures the gap between yields on two- and 10-year Treasury notes was last less than a basis point flatter at 107.84 basis points. The U.S. federal funds rate bounced back to 8 basis points for the first time since June due to month-end demand. This is a negative factor for the dollar.

Investment idea: buy 1.3820 and take profit 1.3870.

David Johnson
Analyst of «FreshForex» company
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