Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Inflation Numbers Giving Bonds A Bounce

Published 07/13/2021, 12:17 PM
Updated 07/09/2023, 06:31 AM

The hot inflation numbers are leading to strength for bonds, which is having plenty of secondary effects. Here we see the ZB futures, which are holding on to a modest gain for the day.

Treasury Bond Futures Chart.

Looking at a broader view, and this time by way of iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT), we can see a well-formed base. The peak was last Thursday (and I mentioned we’d probably sell off some, given our relationship to the ascending channel) but I think we’ve burned off enough steam. I can see this pushing higher from here for days to come.

TLT Chart.

In turn, the banks are weakening. I would note this is especially interesting since, pre-market, both Goldman Sachs Group Inc (NYSE:GS) and JPMorgan Chase & Co (NYSE:JPM) had blow-out earnings, and they are both down. Here is Financial Select Sector SPDR® Fund (NYSE:XLF):

XLF Chart.

The one asset I’d like to see push higher is gold, which is up, albeit not by much. It needs to conquer the descending trendline and, more importantly, the price gap.

Gold Chart.

As for equities, the inflation-shock-selloff lasted about as long as I guessed (e.g. not long) and the entire CPI report has been rendered moot by the Powell Printing Presses.

ES Daily Chart.

Latest comments

Risk Disclosure: 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.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.