DAX “..done nothing to alter the top-heavy chart pattern with a head and shoulders and horizontal neckline.” Chart & Levels from Analyst, Nicole Elliott – Investors Chronicle

 

DAX SHORT TERM TRADER: Square.
DAX POSITION TAKER: Short; stop above 11600. Next target at 10700.

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90 days of no use to US bonds Yield curve flattest since 2007

As bond vigilantes know, you don’t mess around in fixed income; it comes for the quick and the dead. Yesterday the US Treasury yield curve flattened at its fastest pace since March, the spread between 2-year and 10-year Notes just 15 basis points. A snapshot as at yesterday’s close saw yields as follows: 2- YR 2.82 per cent; 3-YR 2.84 per cent; 5-YR 2.83 per cent; 10-YR 2.97 per cent and 30-YR 3.22 per cent. Yields on UK Gilts also fell suddenly on Monday, especially at the very long end which had got out of line in November.

To coincide with this week’s UN talks on climate change in Katowice, Poland (a major coal mining area), the World Bank announced to delegates of 188 countries that it will be allocating $200 billion between 2021 and 2025 to tackle climate change in the most vulnerable parts of the world. Half the money is to be spent on adaptation measures, the other half on curbing emissions.

Financial Markets and Political Commentary

 

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