Bonds Yields May Have Bottomed
After four months of sliding, bond yields may be turning higher.
The first pattern on this chart of the 10-year Treasury Yield is the double-bottom around 1.128%. This corresponds to an oversold condition on the weekly stochastic, which has often marked bottoms for TNX.
Next is the price action in the
iShares 20+ Year Treasury Bond ETF (TLT). It tracks longer-dated securities, but is a useful and liquid instrument that provides inverse signals:
Notice the rising trend line that began in early June and is now breaking. TLT also had a bearish engulfing candle on July 20 that served as resistance this week. In addition, Wednesday had a bearish hanging-man candle. Those patterns on TLT suggest the uptrend in bond prices is exhausted. (If correct, it means yields will move higher.)
This could be a big deal because early 2021 saw a dramatic shift toward value stocks and away from growth. Another move up in yields could revive that trend. Banks and financials in particular could benefit.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
The first pattern on this chart of the 10-year Treasury Yield is the double-bottom around 1.128%. This corresponds to an oversold condition on the weekly stochastic, which has often marked bottoms for TNX.
Next is the price action in the
iShares 20+ Year Treasury Bond ETF (TLT). It tracks longer-dated securities, but is a useful and liquid instrument that provides inverse signals:Notice the rising trend line that began in early June and is now breaking. TLT also had a bearish engulfing candle on July 20 that served as resistance this week. In addition, Wednesday had a bearish hanging-man candle. Those patterns on TLT suggest the uptrend in bond prices is exhausted. (If correct, it means yields will move higher.)
This could be a big deal because early 2021 saw a dramatic shift toward value stocks and away from growth. Another move up in yields could revive that trend. Banks and financials in particular could benefit.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Bài đăng liên quan
Thông báo miễn trừ trách nhiệm
Thông tin và ấn phẩm không có nghĩa là và không cấu thành, tài chính, đầu tư, kinh doanh, hoặc các loại lời khuyên hoặc khuyến nghị khác được cung cấp hoặc xác nhận bởi TradingView. Đọc thêm trong Điều khoản sử dụng.