Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Subscribe
Please try again
Select

Live Webinar Events

0

Economic Calendar Events

0

Notify me about

Live Webinar Events
Economic Calendar Events

H

High

M

Medium

L

Low
More View More
US Bond Yields Rally Further Ahead of a Major US Inflation Report

US Bond Yields Rally Further Ahead of a Major US Inflation Report

Nick Cawley, Senior Strategist

Share:

What's on this page

US Dollar (DXY) Price and Chart Analysis

  • US 2-year yields break above 4.50%.
  • Tuesday’s US inflation report will be this week’s big market driver.

Trade Smarter - Sign up for the DailyFX Newsletter

Receive timely and compelling market commentary from the DailyFX team

Subscribe to Newsletter

For all market-moving data releases and economic events see the real-time DailyFX Calendar.

US Treasury yields continue to grind higher after the recent bout of hawkish Fed-speak ahead of a closely watched US inflation report. The CPI release is expected to show that price pressures are easing in the US but the speed, and the make-up, of this downturn will steer the US dollar, and a range of risk markets, over the weeks ahead.

image1.png

The yield on the interest rate sensitive US 2-year US Treasury is back above 4.50% and back at levels last seen in late November. The sharp post-NFP rate re-pricing has seen the short-date rally by over 40 basis points as traders factor in a more hawkish Fed in the months ahead.

US Treasury 2-Year Yield Daily Chart – February 13, 2023

image2.png

The yield on the benchmark US 10-year has also risen and currently changes hands around 3.77%. The 2s-10s curve inversion of 76 basis points is a fraction off the multi-year 80bps seen recently. Inverted yield curves highlight recessionary fears in the months ahead.

US Treasury 10-Year Yield Daily Chart – February 13, 2023

image3.png
Top Trading Lessons
Top Trading Lessons
Recommended by Nick Cawley
Top Trading Lessons
Get My Guide

The recent move higher in the US dollar has stalled ahead of tomorrow’s inflation report but the technical set -up suggests that this move may not yet be finished. The bullish flag formation made over the last 10 days normally suggests a further move higher and a confirmed break of 103.60 will leave prior horizontal resistance around 104.30 the next level of interest. Above here the January 6 lower high at 105.36 comes into play.

How to Trade Bullish Flag Patterns

US Dollar (DXY) Daily Price Chart – February 13, 2023

image4.png

All charts via TradingView

What is your view on the US Dollar – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES