The pivotal point for markets during the previous week was the release of the unemployment rate in the US for August. The rate was increased above market expectations to the level of 3.8%. This was sort of a surprise for markets, where the majority of participants revised their estimations, anticipating that Fed will not hike rates at September`s meeting. The odds for such a decision are currently very high, reaching 93%. Treasury yields also reacted with modest relaxation. The 10Y Treasury rates made a move from 4.25% down to 4.063% as of the end of the week.
Current charts are pointing to a higher probability that 4.0% might be the next target for 10Y yields. This level might be tested in the week ahead. A move toward the opposite side might lead to 4.20% which could be tested for one more time
Current charts are pointing to a higher probability that 4.0% might be the next target for 10Y yields. This level might be tested in the week ahead. A move toward the opposite side might lead to 4.20% which could be tested for one more time
