The Greece rumors are flying so fast, even Tyler is having trouble keeping up…….
So let’s set aside the drama with Ukraine and Greece for the moment and talk about bonds. My view is that bonds are either at another buying point or, if we do have further weakness, they will bottom very soon. Here’s the front month. The drop we’ve seen over the past couple of weeks is, I believe, a buying opportunity.
My main basis for this is interest rates. As low as they are now, I think they’re going to remain low for years to come, and the United States may even join the negative interest rate party at some point:
Thus, I think bonds (by way of the iShares Barclays 20+ Year Treasury Fund (ARCA:TLT)) are a buying opportunity. Even if we do get some more weakness (which is entirely possible with all the “good” news coming out of Europe recently), we should go no lower than the gap I’ve marked below, which is at 127.40. If it breaks beneath that, errr, forget I said anything.
