Interest rates/Yields have risen a good deal in the last 100 DAYS. Has a breakout taken place though?
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Especially in the 30-year bond, anytime it has hit the top of the falling channel, it has paid to be a buyer of longer dated bonds. Buying at the top of the channel has worked well for the past 15 YEARS! As one can see, the rally in yields/rates remains confined inside of this very uniform falling channel.
Should rates breakout to the upside, investors who want to score on defense will want to overweight positions in ETF’s that move up in price with yields.