The end of plunge? Bonds say YES.Bond yields showed support at 3.116%. This MAY be the end of the plunge in stocks because of the slowdown in the yields' move, but the view is still short term bearish.
(The low didn't form yet, watched closely, but if it forms like I presume, then the divergence occurs with SMI idicator)
Bondyields
Us 10 year bond yields :Will we breach 3% or will the ppt save uIf US 10 year breaches 3% resistance,
Katy bar the door ! I believe this
is a key technical level that may
trigger a larger sell off in the bond
markets. Remember that as the bonds
sell off the yield ( interest rate ) rise's .
As of right now the yield on a 30 year bond
is @ 3.14% and a 10 year is @ 2.96% !
So if you were buying bonds why would you
loan .gov the same amount for 30 years
vs 10 years when the yield is @ equal ?
Answer : you wouldn't unless your the fed reserve bank
who is allegedly selling as well, Quantitative Tightening .
So who will buy all this debt.... ?
Out of neutral spread, looking for directional again. Hello Traders,
I've exited my neutral options spread on $TLT today for decent gains as price retreated back to the center of it.
I am now looking for the potential to add back into a directional position on $IEF (better cost basis then $TLH or $TLT) through common shares if we get a bounce at the 23.6% fibonacci level. Stop will be announced in the updates section if I decide to add back into a bullish position.
Anyhow, good luck to any in bond positions.
Trade smart, and with a plan. Cheers.
=)