Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Treasury Bonds Poised for a Big Move

Published 08/05/2023, 06:59
Updated 09/07/2023, 11:31

As the Federal Reserve continues to fight inflation by raising interest rates, the market is growing uncertain about future rate hikes.

Today, we share a chart comparing the 10 Year Treasury Yield versus the popular iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT).

10-Year Yield Daily Chart

As you can see, both yields and bond prices have formed narrowing patterns… and both of these patterns are nearing completion.

If bond yields (blue) break down and bond prices (orange) breakout higher, we could see some mean reversion leading to lower interest rates. But if the patterns break the other way, it may mean higher interest rates.

Either way, something “BIG” is about to happen. Follow the breakouts or breakdowns.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.