10-Year Yields Can’t Take Out 2% as Markets Stall

Price has broken back through support at 1.91% and is pushing lower.

Earlier in the week with yields sitting at 1.94%, we pondered whether or not 10-Yields could push above 2%.   Currently that answer is no, as price has broken back through support at 1.91% and is currently pushing lower at 1.814%.  Below here, support comes in at the rising trendline from October 8th near 1.75%.  Resistance is above at previous support of 1.91%, and then the ever looming 2.00%. 

Source: Tradingview, City Index

Falling yields, means a falling US Dollar, or DXY.  On a 240-minute timeframe, price failed to take out the 50% retracement level from the highs on October 1st to the lows on November 1st.  Therefore, it has been unable to complete the target for the double bottom near 98.60.  Strong support comes into play below between 98.85 (the breakout of the double bottom) and 98.00 (horizontal support).  Resistance comes in at the recent highs of 98.45.  Above that is horizontal resistance and the 61.8% Fibonacci retracement level from the previously mentioned timeframe just above 98.60. 

Source: Tradingview, City Index

Could falling yields and a falling US Dollar be a sign that there is downside ahead in stock indices as well?  Traditionally, this is the correlation.  S&P 500 has been in an uptrend since forever, but more recently,  the beginning of October and appears to be stalling today just below 3103.  If price breaks the lower upward sloping trendline of the channel near 3080, there is minor horizontal support is at 3059 and strong horizontal support is at 3026.  Resistance is back at the all-time highs of 3103.

Source: Tradingview, City Index

Unfortunately, this week has been pretty slow in terms of volatility.  As the markets waits for the next catalyst to push them in either direction, be weary of more sideways action over the next few days. 


This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

StoneX Financial Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.