#edgeforex #forextrading #forexsignals #forex #bonds #yield #market #treasury #gold #investment #globalmarket #cryptocurrency #bitcoin bonds

Bonds

• There is no respite in bond selling during the Easter holiday. Just when you thought the bond market was about to take a breather at some point last week, yields shot up again today.
• Ten-year Treasury yields have now reached their highest level since December 2018, as the sell-off intensifies, inching closer to the 3% mark. In light trading, the move continues to support the dollar while keeping the yen under pressure. Today’s US yields are as follows:
• 2-year yields are up 4.9 basis points to 2.494 percent.
• 5-year yields are up 6.3 basis points to 2.823 percent.
• 10-year yields are up 5.8 basis points to 2.866 percent.
• 30-year yields increased by 2.5 basis points to 2.942 percent.
• As a result, it is tightening the screws in bond markets around the world.
• Notably, 10-year JGB yields remain close to the implicit cap of 0.25 percent, putting pressure on the BOJ to defend it.
• As Treasury yields rise, the dollar remains firmer across the board, despite a more defensive risk environment.
• EUR/USD is slightly lower, just below 1.0800, while USD/JPY is 0.2 percent higher, at 126.65. Meanwhile, the AUD/USD and NZD/USD currencies have fallen 0.6 percent to 0.7354 and 0.6727, respectively.
• Returning to yields, this chart is one to keep an eye on this month as 10-year Treasury yields threaten to break above their 200-month moving average on their way to 3%.

Gold

• When economic challenges or global issues disrupt the markets, gold is usually the go-to asset for investors. With rising prices and market uncertainty, some investors seek a safe investment with a track record of excellent returns, such as gold.

• Gold cannot provide you with the means to make a significant profit. In the last five years, gold prices have increased by approximately 36%, while the S&P 500 has increased by 104%. The allure of gold is not due to its potential for profit. Rather, it is due to the yellow metal’s ability to act as a safe haven against inflation and severe market declines. For example, during the 2007-2008 bear market in the United States, the general stock market fell 33%, while gold fell only 2%.
• Nonetheless, gold prices are volatile, making gold an investment that is not completely risk-free. You can even construct a well-diversified portfolio without relying on gold.
• However, if you want to invest some of your money in gold, do so in such a way that it only accounts for a small portion of your total investment. Gold bars, also known as bullion, are an excellent choice if you want to invest in gold.
• Investors can purchase bullion by the gramme or ounce, and the purity, manufacturer, and weight of the bar should be indicated on the top face. Collector’s item gold coins, such as American Eagles and Maple Leafs, will require you to pay a premium over the price of the same number of gold bars.
• Furthermore, gold coins are typically less pure than bullion and are sold by dealers, pawnshops, and reputable individual sellers. Gold jewellery, particularly antique pieces of higher purity, provides investors with another way to invest in the precious yellow metal.
• However, depending on the producer, you may need to pay additional fees for the amount of gold you’re actually buying.

Japan

• Earlier comments by Bank of Japan Governor Kuroda pushed USD/JPY lower.
• Catching up on Kuroda’s remarks from earlier in the session. His comments on the ‘excessively weak yen’ are intended to provide some support for the currency; Japanese authorities do not want the yen to fall too quickly.
• Desirable for FX to move stably reflecting econ fundamentals.
• Sharp yen moves could have negative impacts on economy
• Has not changed view that weak yen is positive for economy as a whole.
• Weak yen’s impact is uneven depending on sectors, corporate sizes.
• Recent yen weakening has been quite sharp.
• Recent sharp yen weakening could have impact on corporate profit plans
• Japan’s rising prices as a result of rising energy prices
• Because Japan’s energy is primarily imported, a global commodity rally has only a negative impact, in contrast to a weak yen.
• It is too early to discuss ending the stimulus programme.
• The chart below depicts the impact of Kuroda’s remarks. The goal is to slow the yen’s decline. The intention at this point is not to reverse it.