September US bond futures have had a corrective spike this Friday following the non-farm payrolls (NFP) news. Since April it has been showing how the news of possible rate adjustments by the Fed have been consolidating the US bond to the upside. At the moment, if we look at the rise in gold and bonds, it tells us that it is becoming very interesting for the market to access safer products than equities, and large capitals are beginning to bet on products of this type.
If we look at the lowest price of bonds in September, it is at 112.81250 with its support slightly above. The price high was at Christmas 2023 at 125.90625. Since the April notification of rate hike intentions, interest has been building which currently places the forward POC at around 119.7, slightly below the last strong resistance zone of 120.75779. So it is not going to be unusual to see the bond move higher as long as this intention to raise rates is maintained. The 7-10 year (Ticker AT: IEF.US), 3-7 year (Ticker AT: IEI.US), 1-3 year (Ticker AT: SHY.US) etf ishares are going to be ETFs of great interest for the rest of the year.
Ion Jauregui - Analyst ActivTrades
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