Hey everyone, hope you’re all having a good trading week so far. I’ve been trying to wrap my head around some of the macro stuff because I’m still pretty new to this game and ngl, it’s a lot to take in. I saw a headline earlier saying that Eurozone yields are easing because energy prices pulled back a bit, which apparently cooled down those "duration fears."
To be totally honest, I’m feeling a bit lost on why the two are linked. Does a drop in energy costs usually make bonds look better or something? I’ve been mostly focused on trying to scalp some volatile moves lately, but I keep hearing people talk about how yields dictate the market direction and I don’t want to get caught in a trap because I’m missing the bigger picture. Are you guys adjusting your positions based on this, or is this just noise that’s going to flip back once the next data point drops? Would really appreciate some insight from the vets here.
To be totally honest, I’m feeling a bit lost on why the two are linked. Does a drop in energy costs usually make bonds look better or something? I’ve been mostly focused on trying to scalp some volatile moves lately, but I keep hearing people talk about how yields dictate the market direction and I don’t want to get caught in a trap because I’m missing the bigger picture. Are you guys adjusting your positions based on this, or is this just noise that’s going to flip back once the next data point drops? Would really appreciate some insight from the vets here.
