The ten year bond yield dropped from 1995 to 2008 and has bounced about 25% of that range in the last few months. Yields continue to make lower highs which is bullish for bond prices.
In 2003 there was a weaken in price (increase in yields). In 2007 the bottom fell out of yields and money ran to bonds for safety during the banking system panic. Yields dropped 50% below the 2003-2007 range. The recent bounce is impressive stand alone. But in the context of the move down, it appears obvious that bonds continue to have more buyers than sellers in the long term.
Note that the recent weakness began just as the 1/4 time cycle completed.
The bounce off the 2007-2009 drop is back at the 1×1 angle. A bounce in yield here is possible. But additional weakness will bring the next lower angle into play.
Charts courtesy of Stockcharts.com
Note to Premium Content subscribers: watch for a new page dedicated to Treasury Bonds of various durations.
Related Posts
Tags: BondsNo Comments
0 responses so far ↓
There are no comments yet...Kick things off by filling out the form below.