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Crude Has Been Spooking Bond Players For Months

Published 05/05/2015, 03:51 PM
Updated 07/09/2023, 06:31 AM

Crude Oil (T), 20-Year T-Bills

Bond investors have loved the swift decline in crude oil that began last fall.

Indeed, as crude was falling 60%, popular bond ETF (ARCA:TLT) rallied 24%.

But when TLT was hitting resistance, oil was making an attempt to put in a double bottom.

Once crude looked to have created a “W” bottom at support and started a historic rally, TLT began falling swiftly, breaking below rising channel support of late.

Has crude rallied enough? Whatever your take on that question, it's clear that crude oil has impacted bond players for months.

Bottom line? Watch crude closely in the days ahead.

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