Iran Economic Crisis Forces Afghan Families to Return Home 
Bolivia Approves $1.9 Billion IMF Financing Deal 
US Stock Futures Rally as Markets Digest Fed Rate Hike 
Gold Rebounds Above $4,300 Despite Hawkish Fed Rate Hike 
Asian Chip Stocks Rally as Treasury Yields Ease 
Yemen Fighting Threatens Red Sea Oil Routes 
BOJ Set for 25-Basis-Point Rate Hike as Yen Weakness Fuels Inflation 
Strait of Hormuz Oil Shipments Hit Six-Month High as U.S. Clears Mines 
Asian Stocks Rise as Oil Falls, BOJ Rate Decision in Focus 
FxWirePro: Daily Commodity Tracker - 21st March, 2022 
Canada Eyes India Trade Deal by Year-End 
Fed Rate Hike Threatens Housing as U.S. Growth Leans on AI, Citi Says 
 - EconoTimes)
Add as a preferred source on Google
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.
