India Bonds To BreakoutIndia Bonds were on a long term downtrend, Now daily as well as weekly structure looks positive now.
Government bonds
US 10 year yield - Can spike furtherUS 10 year yield at 2.80%. (Price falling)
Weekly chart
Cup pattern breakout seen at 2.67%.
3% plus possible.
Not a good sign for global equity markets.
German 10 Yr Yields hit new highs @0.71%Globally the theme of Central Bankers tightening monetary policy is well captured with German yields hitting new yearly highs. Interest rates are rising all across the Globe and emerging markets need to make note of this. Yields could be testing 1% in the coming months if crude continues its upturn.
Indian govt 10y bond yields set to spikeWeekly chart
10 year yield broken 2 year resistance.
It is currently in the middle of the upward channel.
2 year resistance line could possibly act as a support which is at 7.50%-7.52%.
Yields could possibly retest support and then spike towards 8%.
Bond traders should ideally look to go short in price (long in yields at 7.50%) with stop at yield equivalent of 7.29% for a target of a price at yield equivalent of 8%.
