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Long-dated treasury bonds have been crushed over the past year, sending ETFs like iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) spiralling more than 20%.
Improving economy? Inflation concerns? Perhaps a combination of both? Interest rates have risen sharply and, thus, bond prices have fallen in historic fashion.
Today’s chart looks at TLT over the past 20 years. As you can see, the recent decline has truly been historic. TLT’s price has swung from historically overbought highs to oversold lows.
At present, the long-dated bond TLT ETF is trading 7.8% below its 200-day moving average. This happens to be more oversold than the prior four tradable bottoms – marked on the chart by each (1). This historic low comes at the same time that price is testing an important lateral support/resistance area at (2).
Perhaps this rare event will be a buying opportunity for bullish bond traders. Stay tuned.
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