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Charts Of The Week: U.S. Long Rates Heading Up

Published 09/16/2014, 05:29 AM
Updated 07/09/2023, 06:31 AM

After shocking the majority of participants by declining for the first 8 months of 2014, long rates look to be headed higher once again:

TYX Daily

It looks like the long end of the interest rate curve put in an important low in yields at the end of August – A 3.50% yield on the U.S. 30-YearTreasury Bond is a conservative short term target after Friday’s huge upside breakout.

Interest rate sensitive equity sectors such as REITs ( via iShares Trust DJ US Real Estate (ARCA:IYR)) and utilities ( via SPDR Select Sector - Utilities (NYSE:XLU)) should be avoided. Meanwhile, the bullish case for the US dollar continues to grow:

USD Daily

‘High and tight’ bull flag in the US dollar.

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Latest comments

I wonder when equity strategist will stop trying to predict the bond market. Since you are big on charts, make a chart of the euro and 30 yr ust, America is no an island on it own, US interest rates and growth are higher than most g8 nations, the market likes balance so the dollar should remain strong leading to lower rats.
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