Is The 6 Month Rally In Bonds Over?
Chris Kimble | Jun 18, 2014 12:21AM ET
It's been a good year for bonds in just six months. Popular bond ETF iShares Barclays 20+ Year Treasury (ARCA:TLT) was up as much as 12% at the start of this month. Most investors would be happy to make 12% in a year owning government bonds.
Is the six month rally in bonds over? In my humble opinion it's way too soon to answer this question. The above chart does reflect that the yield on the U.S. 10-Year note and U.S. 30-Year bond are attempting to break above resistance of the falling channel that has been created since the first of this year.
These charts are both "weekly" so we will more accurately know if a breakout in yields has actually taken place toward the end of this week. A breakout doesn't suggest the bond bull move is over, yet it would suggest the big decline in yields might need a breather for a while.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.