Many stock indexes have broken resistance, yet haven’t seen this situation in a while. The yield on the 30-year bond looks to have held on a 17-year support line and is breaking falling resistance.
With the yield on the long-bond holding at support and now breaking falling resistance, could this be a signal that something in the economy is finally improving? Commodity strength causing this? Again, I don’t know, but for long-bonds holders this is a sign to harvest, if you haven’t already.
For those owing the inverse bond ETF (TBF) this is a positive pattern breakout, in yields!
5 & 10 year yields are on similiar support, per the bottom of a long-term falling channel, just like the 30-year, with the only break the 2007/08 financial crisis low.
Chris, do you see a similar pattern in intermediate Treasury yields (IEF) or mixed bonds (BND)? Being a conservative investor I keep a lot of my savings there, but I’m a little nervous about that right now. I don’t see any patterns in them, or in TIPs, just a nice steady rise… but it sure has a long way to fall. Do you see anything there?
This maybe the catalyst to end the $US carry trade that has been going on for the past few months. Therefore the $ may just hold support at 76 and move higher with yields. Don’t know if that will stall the commodity run or not.