10-Year Yield Jumps to Highest in 10 months!!!

10-Year Yield Jumps to Highest in 10 months!!!

...and now we back to normal.

Getty Images

On Wednesday a story that first appeared on Bloomberg circulated about China’s alleged plans to “halt or slow” purchases of U.S. debt. 10-year treasury yields jumped to 2.595% their highest levels since March of 2017. The VIX shot up 7.5% and the S&P 500 posted its first negative day of 2017. Even former bond King Bill Gross (now apparently just a bond Prince) said the bond bear market is now "confirmed" amid the Wednesday selloff. As often happens with news of this sort, however, morning came and the move reversed. 10-year note yields fell back to 2.526% closing at 2.531%, the VIX dropped back below 10 and back below the prior day's close and the S&P shot up to another new record high and record close. 

This is the failure of news trading. What is real news and what is "pseudo" news (I just couldn't use "fake")? One of the best possible sources for financial news put out a story that contradicted a story they ran in June, according to Morgan Stanley.“When the first story was written in June 2017, 10y Treasuries yielded 2.20% and, apparently, Treasuries were becoming more attractive than other sovereign debt,” Morgan’s Matthew Hornbach writes, in a note dated Thursday, before asking the following: “Now, with 10y Treasury yields at 2.55%, we are supposed to believe that Treasuries have become less attractive relative to other assets?” So Morgan Stanley isn't buying the story, but that doesn't mean it wasn't true. It just means that things change quickly and traders should focus on price action.

Your trading motto should be, "I only care what is happening, I don't care why it's happening." Stay above it all and let Bloomberg, Morgan Stanley, and China call each other "Fake Trading News".

The information contained above may have been prepared by independent third parties contracted by Nadex. In addition to the disclaimer below, the material on this page is for informational and educational purposes only and should not be considered an offer or solicitation to buy or sell any financial instrument on Nadex or elsewhere. Please note, exchange fees may not be included in all examples provided. View the current Nadex fee schedule. Nadex accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representations or warranties are given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk and any trading decisions that you make are solely your responsibility Trading on Nadex involves financial risk and may not be appropriate for all investors. Past performance is not necessarily indicative of future results. Nadex instruments include forex, stock indexes, commodity futures, and economic events.

Nadex binary options and spreads can be volatile and investors risk losing their investment on any given transaction. However, the limited-risk nature of Nadex contracts ensures investors cannot lose more than the cost to enter the transaction. Nadex is subject to U.S. regulatory oversight by the CFTC.