50% of the post-election rise evaporates
US 10-year yields are on the lows of the day, down 2.5 bps to 0.845%. It has been a gradual drift decrease because the check of 1.0% within the aftermath of the US election and the Pfizer vaccine information.
Regardless of extra excellent news on the vaccine entrance, there was a gradual bid in bonds to push yields decrease. We’re now into the 50-61.8% retracement zone of the post-election vary.
The drop in yields is mirrored in USD/JPY, which has been drifting decrease for the six classes and has already cleared these Fibonnaci ranges.
There may be some speak gathering steam of the Federal Reserve doing extra to cushion the US financial system towards the chance that Congress stays sidelined.