US10Y: Soaring Bond Yields as Federal Reserve Maintains Hawkish

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The Fed Hawkish Stance

During Wednesday's address, Federal Reserve Chair Jerome Powell reinforced his stance on tackling inflation with a more cautious approach. He emphasized that the central bank is not yet finished with its efforts to curb inflation and hinted at the possibility of implementing multiple interest rate increases during future monetary policy meetings.

Powell's statement comes as a response to the ongoing challenge of bringing down inflation, which has consistently remained above the central bank's target of 2%. Notably, some Fed officials have emphasized in recent speeches that inflationary pressures persist. They specifically highlight core inflation, which excludes the volatile prices of food and gas, as not decelerating as rapidly as overall inflation.

The aforementioned statement supports the potential scenario of higher Government Bond Yields in the future, as an increase in interest rates typically correlates with elevated yields.

Technical Analsyis
The U.S. government's 10-Year Bond Yield has undergone a retracement, precisely at the 0.5 Fibonacci ratio, establishing a support area. Notably, the yield currently exhibits a bullish trend as it remains above the EMA 200 line, indicating positive market sentiment. Furthermore, the Falling wedge pattern suggests a continuation of the prevailing trend. Complementing this observation, the stochastic line crosses within the neutral area, further bolstering the case for a possible upward movement toward the target area.

It is important to keep in mind that once the target/support area is reached, the roadmap provided may no longer be valid.

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"Disclaimer: This analysis is intended solely for educational purposes and should not be considered as a recommendation to take a long or short position on the US10Y ."
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Yup, A breakout confirmed in the pattern, indicating a bullish bias ahead
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거래청산: 타겟 닿음
Reached the first target, WIll it go up even more?
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거래청산: 타겟 닿음
Finally Reached the Second Target, congrats!
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