Bund 10Y Yields are back above zero for the first time in a couple of years.
We have been viewing the bond markets as building major tops for quite some time and if we take a look at the EU 10Y yield rate, which has just breached zero, we can see that there is clear evidence that rates are now in a longer term up trend and have been for well over a year. Note...
It is time for the next cycle in bonds to develop.
bond yield on bonds of the european union is likely to go up again according to this cycle.
bond yield goes up means, bond prices are going down, which means bonds are being sold as demand on bonds lowers again, while demand on stocks rises.
what does that mean for forex ?
this means a rising EUR!