Thursday, February 22, 2007

Are Yields Ready To Move Higher?






Looking at the above chart of the 10 year treasury note yield, it appears to me that we may have seen a short term bottom.

The 10 year yield had a nice advance from December to January and has now retraced 50% of that move. Yields showed some strength today bouncing off the 50% level.

If you look at the seasonal for Bonds, you can see that bonds tend to sell off this time of year establishing a low in April or May. Since yields move inversely to bonds, that means seasonally yields could move higher over the next month or so.

4 comments:

Sandro said...

Kevin, fundamentals are telling me that there is a big market sell-off coming within two weeks.

What the charts are telling? I have little clue in charts. Do you see anything?

Kevin said...

Charts are telling me that all the money is being made on the long side. When I buy I make good money so I'll stick with the long side.

Sandro said...

Good, thanks. Will see.

What I'm watching today is:

http://www.markit.com/information/affiliations/abx

Will see how long it will take to bring the market down on those.

russell_fuhrman said...

It sure seems to be that this is the healthiest market, at least technically, that we've ever experieced. I share your bullish enthusiasm Kevin-fundamentals are also very good.

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