Michael Gouvalaris | Jul 30, 2013 11:12AM ET
There has been a lot of chatter regarding interest rates of late, so I decided that I would take some time and look at the technicals along with the supply and demand patterns. Interest rates have moved considerably higher in the last few months which has many believing this environment is here to stay. Taking a look at the two charts below, we are following the CBOE 10 Year Treasury Note Yield Index, which tracks the yield on 10-year treasury bonds, otherwise known as, 'the benchmark of interest rates'.
The first chart below is a monthly chart going all the way back to 1998. On the chart I have highlighted the two significant bear markets inside the boxes. I have also highlighted the three significant bull markets by marking the low to highs with green horizontal lines, as well as annotations.
Let's conclude by taking a look at the performance of the different bonds year to date. The final chart actually shows that the high yield corporate, junk bonds and short treasuries are positive on the year while US long bond, TIPS and investment grade corporate are showing losses for the year.
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