Are Investment Grade Bonds About to Rally?

ng.investing.com/analysis/are-investment-grade-bonds-about-to-rally-143145

By Chris Kimble | Dec 07, 2022 19:05

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LQD

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Considering our national debt and the debts of companies and consumers, it’s evident that the bond market is critical to our economy.

This is likely why the iShares iBoxx Investment Grade Corporate Bond ETF (NYSE:LQD) started to sputter last year, well before the bear market in stocks this year.

You can see the turn lower on today’s chart, a long-term monthly chart of LQD. This downturn also hinted at the economic slowdown we are seeing.

LQD Monthly Chart

So, is it a good or bad time to sell bonds?

As November was coming to an end, the Investment Grade Bonds ETF (LQD) recorded the largest one-day outflows in its history at (1). Could this be a contrarian indicator of a bottom?

It’s worth noting that LQD recorded one of its lowest RSI (Relative Strength Index) readings in the history and is turning higher after testing its 61% Fibonacci retracement level at (2).

Will these historic readings/indicators lead to a broader rally in investment-grade corporate bonds? Stay tuned.

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Central Banks

Interest Rates

Next Meeting

CBN

17.50%

Mar 21, 2023

BOE

3.50%

Feb 02, 2023

ECB

2.50%

Feb 02, 2023

FED

4.50%

Feb 01, 2023

SNB

1.00%

Mar 23, 2023

RBA

3.10%

Feb 07, 2023

BOC

4.50%

Mar 08, 2023

RBNZ

4.25%

Feb 22, 2023

BOJ

-0.10%

Mar 10, 2023

CBR

7.50%

Feb 10, 2023

RBI

6.25%

Feb 08, 2023

PBOC

3.65%

BCB

13.75%

Feb 01, 2023

NSE 30	1,897.57	-6.54	-0.34%
NSE All Share	52,657.88	-95.08	-0.18%
US 30	33,965.9	+16.5	+0.05%
US 500	4,068.9	+8.5	+0.21%
FTSE 100	7,765.15	+4.04	+0.05%
DAX	15,150.03	+17.18	+0.11%
South Africa Top 40	74,766.05	+286.28	+0.38%

Brent Oil	86.33	-1.14	-1.30%
Crude Oil WTI	79.38	-1.63	-2.01%
Gold	1,928.00	-2.00	-0.10%
Silver	23.725	-0.295	-1.23%
Copper	4.2300	-0.0375	-0.88%
London Cocoa	2,038.00	+5.00	+0.25%
London Wheat	227.05	0.00	0.00%

Nigeria 10Y	13.952	+0.001	+0.00%
Nigeria 2Y	7.747	-2.218	0.00%
U.K. 10Y	3.3510	+0.0260	+0.78%
Germany 10Y	2.2225	-0.0225	-1.00%
U.S. 10Y	3.507	+-0.011	+-0.31%
U.S. 5Y	3.6119	+-0.0091	+-0.25%
U.S. 2Y	4.2011	+-0.0059	+-0.14%

Access Bank	10.00	+0.00	+0.00%
Zenith Bank	24.90	+0.20	+0.81%
UBA	8.15	-0.05	-0.61%
FBN Holdings	11.70	0.00	0.00%
Guaranty Trust Holding	24.40	+0.10	+0.41%
Sterling Bank	1.560	+0.030	+1.94%
Dangote Cement	265.90	-1.00	-0.37%

Are Investment Grade Bonds About to Rally?

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