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An across the board breaking of support is taking place in a wide variety of bonds in the 6-pack above. Could this decline in price/rally in yield actually be a sign that growth in the economy is starting to take place?
Mark Twain once wrote “the report of my death has been greatly exaggerated!” Dating back to the ratings downgrade in U.S. Government bonds by S&P last summer and even further in the past, many have called for the death of bonds, due to a wide variety of reasons. An across the board breakdown in bonds does not mean the bond market is dead. The breaking of support should be respected for many reasons though!
Does the breakdown in prices/rally in yields reflect a improving economy? I’d like to hear your thoughts/feed back on this situation, because this question is way above my pay grade!
From a portfolio construction stand point it would suggest a harvesting in bond positions and if very aggressive, one could establish positions to score on defense with overhead stops.