US yields keep highs ahead of GDP

Pablo Piovano FXStreet

The upside momentum in US yields remain intact so far this week, extending the rebound from recent lows and currently flirting with fresh multi-month levels.

Yields in the main benchmarks, such as the 2-year, 5-year, 10-year and 30-year are currently navigating a ‘sea of green’ at 0.888%, 1.349%, 1.856% and 2.609%, respectively, all levels last seen in the first months of the year.

Increasing expectations of a Fed’s move by end of 2016 continue to sustain the upbeat sentiment in yields and thus lending oxygen to the USD-rally. Based on Fed Funds futures prices, CME Group’s FedWatch tool now sees the probability of higher rates in December at above 70%, meandering between 68% and 72% in recent sessions.

Later in the NA session, US advanced GDP figures for the third quarter are due seconded by the final October’s results from the Reuters/Michigan index.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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