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24 Dec 2014
Surprisingly strong GDP data, underwhelming reaction from bond market – MPTrader
FXStreet (Barcelona) - Mike Paulenoff of MPTrader notes that in reaction to the fasted Q3 growth in US since 2003, 10-year yield climbed from 2.15% to 2.19%, further observing that better yields and growth clobbered Gold beneath the key support at $1186.
Key Quotes
“In reaction to the fastest Q3 growth since 2003, 10-year Yield has climbed from 2.15% to 2.19%!”
“I guess that bond traders either don't believe the data (think it will be revised lower), or they are looking at the unchanged GDP price indicator at 1.4%, which is still well beneath the Fed's target of 2.0%.”
“Let's notice that YIELD needs to claw its way above 2.23% to trigger meaningful upside potential, based on my chart work.”
“Meanwhile, stronger U.S. growth accompanied by quiescent movement in Yield, and a Fed looking for, perhaps wanting an uptick in inflation have not inspired a strong bid in Gold, which got clobbered beneath key support at $1186 yesterday, and appears destined to test its Nov-Dec support line, now in the vicinity of $1162.”
“If $1162 is violated and sustained, it should trigger downside continuation towards $1130.”
Key Quotes
“In reaction to the fastest Q3 growth since 2003, 10-year Yield has climbed from 2.15% to 2.19%!”
“I guess that bond traders either don't believe the data (think it will be revised lower), or they are looking at the unchanged GDP price indicator at 1.4%, which is still well beneath the Fed's target of 2.0%.”
“Let's notice that YIELD needs to claw its way above 2.23% to trigger meaningful upside potential, based on my chart work.”
“Meanwhile, stronger U.S. growth accompanied by quiescent movement in Yield, and a Fed looking for, perhaps wanting an uptick in inflation have not inspired a strong bid in Gold, which got clobbered beneath key support at $1186 yesterday, and appears destined to test its Nov-Dec support line, now in the vicinity of $1162.”
“If $1162 is violated and sustained, it should trigger downside continuation towards $1130.”