Bond Market – Weekly Analysis

The bond market recorded quite a few signals that require immediate attention. In this analysis, we break down the structure, momentum, and key technical signals, examine the full yield curve and spread dynamics, and take a closer look at the Canadian bond market. CANDLES & TA: Most likely, the US10Y is positioning for a serious bullish rally. Unless yields retrace significantly in the final days of April, the 2M frame will form an epic Bullish Engulfing combo, strongly elevating the monthly bullish momentum established in March. The daily frame recorded a 100/200 DMA golden cross earlier this week, and this event strongly supports the prospective 2M closure. The entire yield curve is approaching the end of April with similar signals, with the shortest maturities looking the most bullish. After strong bullish closures on the monthly and quarterly frames in March, the bond market is signaling a prolonged bull market in…