Interest Rates Peaking And Bond Prices Bottoming?

If one has been long bonds since July of 2015, its been a long and hard 6-months, as bond prices have fallen hard/yields shot up. Could rates be peaking and bond prices at lows? For sure the short-term trend in bonds is down and yields up. Is the longer-term trend about to change?

Below looks at our rate 6-pack, which looks at price and yields.

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The top row reflects that yields and inverse bond ETF TBF, are all testing falling resistance in a downtrend, with momentum lofty. The bottom row reflects that bond prices are testing support of rising channels, with momentum deeply oversold. reports that bond bulls on the 10-year yield are hard to find, as the bullish percentage now stands at 0%!

Below looks at the Stock/Bond and Bond/Stock ratios, which compares the S&P to TLT, since TLT’s inception.

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With yields testing falling resistance and bond prices testing rising support, the above ratio could become important when it comes to portfolio construction.

Disclosure: Premium Members shorted bonds at the highs in July and ...

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