SocGen: Out-of-Control Bond Yields Present Early Test for Warsh

Subadra Rajappa, Head of US Rates Research at Societe Generale Americas, said that US Treasury yields are beginning to 'get out of control,' presenting an early test for new Fed Chair Kevin Warsh. Rajappa spoke with Jonathan Ferro and Lisa Abramowicz on Bloomberg Television's 'Surveillance' program. Rajappa noted that this volatility in the bond market is one of the first major challenges Warsh will face upon taking office. She indicated that these 'uncontrolled' moves in yields could put pressure on the Fed's monetary policy stance and inflation expectations. The analyst emphasized that these market developments will shape the new Fed chair's communication strategy and policy steps. Rajappa added that investors will closely monitor Warsh's initial statements and potential interest rate decisions. This is not investment advice.

📊 DXY — Piyasa Yorumu

■ neutral · 60%

The US Dollar Index (DXY) is trading at 99.24, up 0.5% over the past 24 hours. The RSI stands at 67.4, approaching overbought territory but not yet signaling an extreme. The MACD line is nearly flat and very close to the signal line, suggesting weakening momentum. While the price remains above both the 20-day and 50-day moving averages, a fresh catalyst is needed to sustain the uptrend. Headline risks suggest that uncontrolled moves in bond yields could pressure the dollar index, leaving short-term direction uncertain.

RSI 14

67.4

MACD

0.14

24h Δ

0.51%

📊 SPX — Piyasa Yorumu

▼ down · 60%

The news headline emphasizes that the uncontrolled rise in bond yields poses a risk to the market and serves as an early test for Warsh. This situation could reduce risk appetite and put pressure on stock markets. Technically, the SPX closed just below its 20-day moving average (7443.63), with the RSI neutral at 50. The MACD has just crossed below the signal line, which could be interpreted as a short-term weakening signal. However, the 50-day moving average (7402.49) stands as a nearby support level. Therefore, a limited decline is expected in the short term, but the probability of an extreme sell-off is low.

RSI 14

50.1

MACD

28.60

24h Δ

0.45%

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