Monday, August 30, 2010

30-Year Treasury Bond yield reverses with initial target at 3.9%

Bouncing off the lower channel trendline 30-Year Bond yield is targeting initially the Upper trendline resistance at 3.9%. RSI and ROC are indicating there is a reason for strong conviction in this trade, not to mention that the candle is qualified for a Key Reversal sign.


  1. Fridays decline in price - hike in yields - was entirely becsuse of Option Expiry. It is too soon to call a top in prices and we may have to await the November re-funding before a turn becomes a reality. After all this year in price is inside last year which in turn is inside the prior year. IE we have range markets that are expanding / contracting and although the multi year view is for a substantial hike in yields...after all history teaches us that everytime yields drop to so low there is at least a minimum backup to 6%-8%...the weight of money argument is chasing so called guaranteed yield over risk