Blake Morrow’s EDGE Chart of The Day – ZN
Blake Morrow’s EDGE Chart of The Day – ZN
The Dollar Tailwind
Following the CPI release today, the 10yr notes sold off and broke back below the 200dma. The risk near term is that since the 10yr broke lower, it looks like the next move back be back to the 109’13’ level support. The rise in yields (inverse of the ZN contract) would suggest US 10y yields may continue to rally which could provide a nice tailwind for the US Dollar squeeze we are witnessing now.
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