Treasury Bonds Poised for a Big Move

By Chris KimbleBondsMay 08, 2023 01:59AM ET

www.investing.com/analysis/treasury-bonds-poised-for-a-big-move-200637872

Treasury Bonds Poised for a Big Move

By Chris Kimble | May 08, 2023 01:59AM ET

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As the Federal Reserve continues to fight inflation by raising interest rates, the market is growing uncertain about future rate hikes.

Today, we share a chart comparing the 10 Year Treasury Yield versus the popular iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT).

10-Year Yield Daily Chart

As you can see, both yields and bond prices have formed narrowing patterns… and both of these patterns are nearing completion.

If bond yields (blue) break down and bond prices (orange) breakout higher, we could see some mean reversion leading to lower interest rates. But if the patterns break the other way, it may mean higher interest rates.

Either way, something “BIG” is about to happen. Follow the breakouts or breakdowns.

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Comments (1)

Russom May 15, 2023 10:04AM ET

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I think nothing is going to happen in the next 6 months, neither the FED will increase rates or decrease rates so both curves will stay flat ...... however if inflation comes down even if it is little by little then TLT is the one to break out strongly

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Central Banks

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PBOC

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BCB

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Jun 21, 2023

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Treasury Bonds Poised for a Big Move

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