The 4-pack below represents different types of bonds with one thing in common….All are testing key support lines right now!
Support is Support until broken! Yields on the 30-year bond HAVE NOT broken the key line at (1) for 17-years! If this line does break a major trend change for bonds is at hand! Odds favor that a break of support in one style of bonds in the above 4-pack could see a break of support across the board.
Game Plan….Have NO position in any of these bonds right now. If support is taken out, will look to score on defense in the bond arena!
cjk… I like charting MUB, the national muni bond ETF. It broke its long-term moving averages last fall at $105 and it now stands at $99. Over the last 6 months for sure tax breaks have come to owners. Per picking it up now, I would prefer other places due to interest rate and muni bond risks. The muni bond fund you mentioned broke its 200-ma around the same time, which for conservative investors, keeps it on a sell signal.
Hi Chris – I also noticed that high-yield muni bond mutual funds (e.g. PRFHX) appear to be at support. Any recent thoughts on muni bonds? – interested in parking some cash there due to their tax status. Thanks cK