**Micro 10-Year Yield Futures: Key Characteristics** Micro 10-Year Yield Futures (10Y) are currently trading at 4.216% and are in a short-term downtrend. The market has dropped 8.89% over 51 sessions since May 22 and 6.11% in the last 15 sessions, indicating bearish momentum. Bearish targets are activated below 4.224, with important profit points at 4.207, 4.194, 4.187, and 4.164. For a bullish trend, the price needs to cross and stay above 4.230, with targets at 4.233, 4.240, 4.251, 4.260, and 4.277. The intraday low is 4.213, and the high is 4.228. The 52-week range is from 3.595 to 4.809. Unlike bond futures, Micro 10-Year Yield Futures allow speculation on yields, which influences expectations for inflation and interest rates. For each 0.01% movement, there’s a $10 gain per contract, while a minimum tick size of 0.005% is worth $5. TradeCompass recommends making one trade per direction and placing stops carefully, highlighting the need for precision in yield trading. This guidance provides useful insights into macroeconomics and interest rate forecasts, fitting in with current financial strategies. Remember, this analysis is informational and not financial advice. Trading carries risks. Visit investingLive.com for more trade insights. **Bearish Outlook on 10-Year Yields** We see a bearish outlook for 10-year yields as long as they stay under the 4.224% level. This perspective is backed by the recent July Consumer Price Index (CPI) report, which showed inflation dropping to 2.8%. Additionally, the latest jobs report fell short of expectations, adding only 175,000 jobs and indicating a slowing economy. For traders betting on lower yields, the first targets to monitor in the upcoming days are 4.207% and then 4.194%. If the price drops below these levels, it might head toward 4.164%, a significant level from April this year. This would confirm the downtrend that began after the peak in late May. However, we need to be ready to adjust our view if yields rise above 4.230%. This could indicate that the market is beginning to factor in stronger economic data or a more cautious stance from the Federal Reserve. A sustained increase could bring targets like 4.240% and 4.251% into play in the coming weeks. It’s worth noting that yields have significantly decreased from the 4.809% peak seen last year. The aggressive rate hikes by the Fed in 2023 and 2024 appear to be effectively cooling the economy. If this trend of decreased inflation continues, it may not be surprising to see yields test the lower end of the year’s range around 3.60%. No matter the direction, it’s wise to wait for the market to make a decisive move below 4.224% or above 4.230% before taking action. Once a trade is active and reaches an initial profit target, consider adjusting your stop-loss to protect your position. This approach helps manage risk as we navigate the market’s next steps. Create your live VT Markets account and start trading now.

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