A $31.4 trillion debt ceiling was in the spotlight of the markets during the previous week. The possibility of the US debt default would certainly have large repercussions not only to the US but also would be felt through the rest of the world. As per currently available official data, the estimation is that the US might default on its debt in June or July, the latest, which is labeled by the government as “significant risk”. As for the Fed rate hikes, the majority of investors are of the opinion that the Fed should stop with further rate increases, as it might hurt the economy more than previously estimated.
The US 10Y T-notes ended the week at level of 3.463% as investors were digesting the potential outlook of the US economy after recent developments and rate hikes. The University of Michigan report has been released during the previous week, providing expectations on inflation for the next 5 years. The majority of participants in the survey answered 3.2%, which is higher from the 3.0% estimated during the previous month.
Current sentiment on US10Y T-notes is neutral, as RSI moves around level of 50. The moving average of 50 days just made a cross with its MA200 counterpart from the upside, forming a so-called “dead cross”. In technical analysis this indicates the high potential for a downside in the future period. However, for the week ahead, charts are pointing to some potential for the 10Y T-notes to reach 3.30%, but would most certainly oscillate around $3.40 during the week.
The US 10Y T-notes ended the week at level of 3.463% as investors were digesting the potential outlook of the US economy after recent developments and rate hikes. The University of Michigan report has been released during the previous week, providing expectations on inflation for the next 5 years. The majority of participants in the survey answered 3.2%, which is higher from the 3.0% estimated during the previous month.
Current sentiment on US10Y T-notes is neutral, as RSI moves around level of 50. The moving average of 50 days just made a cross with its MA200 counterpart from the upside, forming a so-called “dead cross”. In technical analysis this indicates the high potential for a downside in the future period. However, for the week ahead, charts are pointing to some potential for the 10Y T-notes to reach 3.30%, but would most certainly oscillate around $3.40 during the week.
