TLT....make or break!

7 thg 4, 2022

US yields have continued their move higher after our accurate call for a breather and our suggested targets were reached a few weeks ago in our february call for 10y yields. TLT has now moved to the "support" area that has proven to be a good buying opportunity a number of times in the last 15yrs. Inflation is here to stay and the FED who has been late seems ready to fight it with more aggresive hikes and QT in the comming months. Does this means that inflation and rates have peaked in the short term as the market has fully priced it in? We think there is a good chance for it, and we think that TLT could prove to be a good buying opportunity at current lvls ($126) for a trade. ultimatley rates will move higher, and the trend will break, but we dont think we are there yet as economy is slowing down and asset markets are likely to correct in the next few weeks/months.