Despite the strong economic data a risk-off tone has developed in the US economy over the past two couple of trading sessions. That risk-off tone continued yesterday with falls in global equity markets and declines in Global Bond Yields. US Treasury Yields fell 5.7 bps to 2.33%. The moves again mostly occurred in the real yield component which fell 3.8 bps to 0.36%, while the breakeven inflation rate fell 1.8 bps to 1.97%. Despite the decline, it is not clear what exactly drove the move and overall markets are focused on the President Xi-Trump meeting on Thursday and on US Payrolls next Friday. Traders have been closing short Treasury positions over the past few weeks amidst Congressional gridlock (typified by the failure to pass healthcare reform) and a lack of policy detail on fiscal plans. Comments by the Fed’s Dudley on Friday were also interpreted as hinting at a lower terminal Fed funds rate then currently implied by the Fed’s median dotpoint of 3%.

To mark my 1300th issue of Tradernoble Daily Commentary I am offering a special 2 year rate of Euro 2750 for my Platinum Service which includes 1/4 updated emails throughout the trading day. This offer is open to both new and existing members and if anyone is interested can you please contact me on bryan@tradernoble.com for details.

For anyone following my Platinum Service it made 76 points yesterday on the first trading session of April, having made 1335 points in March, 1481 in February and 1734 in January. The previous seven months saw gains of 1351, 1971, 1582, 1142, 1782, 1682 and 2550 points respectively. Since I started this Platinum Service in June 2015 it has averaged a monthly gain of over 1750 points.

This content is for Free Members or higher.

Already Have an Account? Log In

New to TraderNoble? Register