U.S.-India Trade Framework Signals Major Shift in Tariffs, Energy, and Supply Chains 
Asian Markets Slip as AI Spending Fears Shake Tech, Wall Street Futures Rebound 
South Korea Assures U.S. on Trade Deal Commitments Amid Tariff Concerns 
Australia’s December Trade Surplus Expands but Falls Short of Expectations 
Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
Best Gold Stocks to Buy Now: AABB, GOLD, GDX 
Trump Lifts 25% Tariff on Indian Goods in Strategic U.S.–India Trade and Energy Deal 
Silver Prices Plunge in Asian Trade as Dollar Strength Triggers Fresh Precious Metals Sell-Off 
Global Markets Slide as AI, Crypto, and Precious Metals Face Heightened Volatility 
 - EconoTimes)
In an article published on October 26th, we recommended selling 10-year bund after a breakout of 162.5 area with the first target being around 160 area and we forecasted the bund to drop towards 153 area. The story is available here, http://www.econotimes.com/FxWirePro-10-year-bund-heads-for-a-sell-breakout-367667
The first target has been reached. While most of the analysts are calling the drop in bond prices around the world as Trump effect (Donald Trump is the new President of the United States), we smell the threat of looming inflation, which we believe has to do more with the selloffs than the effect of Trump Presidency. However, it is a fact, that a win by Mr. Trump is influencing some commodities like copper but the rises in commodity prices were well under way.
German 10-year bund is trading at 0.27 percent; it was at -0.1 percent in early October. German 2-year bond is trading at -0.61 percent. While we suspect the 2-year yield to remain closely anchored to European Central Bank’s (ECB) negative interest rate, we expect the spread between 2-year and 10-year to widen further.
Hence, keep riding our recommended short call in bund and keep selling at rallies. Areas like, 163 and 164 are likely to act as key resistance.
