U.S. Economic Outlook 2026: Growth Seen Strengthening as Fiscal Support Ramps Up 
Oil Prices Hold Near Two-Week Highs as Markets Await Fed Rate Cut and Monitor Geopolitical Risks 
U.S. Open to Special Trade Terms for South Africa Under Possible AGOA Extension 
Australian Dollar Rises as RBA Holds Rates and Signals Persistent Inflation Risks 
Asian Markets Slip as Investors Brace for Fed Rate Cut and Global Policy Decisions 
Holiday Economic Questions: What Bank of America Says You Should Expect 
Silver Prices Surge to New Record Above $60 as Supply Concerns and Fed Expectations Boost Demand 
Gold Prices Hold Firm as Markets Await Fed Rate Cut; Silver Surges to Record High 
 - 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.
