Breakout in……Yields on the 30-year bond

Posted by Chris Kimble on 10/14/2010 at 4:34 pm; This entry is filed under bonds, Yields.

Many stock indexes have broken resistance, yet haven’t seen this situation in a while.  The yield on the 30-year bond looks to have held on a 17-year support line and is breaking falling resistance.

With the yield on the long-bond holding at support and now breaking falling resistance, could this  be a signal that something in the economy is finally improving?  Commodity strength causing this?  Again, I don’t know, but for long-bonds holders this is a sign to harvest, if you haven’t already.

For those owing the inverse bond ETF (TBF) this is a positive pattern breakout, in yields!

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3 Comments

  1. Bob_in_CA October 14th, 2010 at 6:47 pm

    This maybe the catalyst to end the $US carry trade that has been going on for the past few months. Therefore the $ may just hold support at 76 and move higher with yields. Don’t know if that will stall the commodity run or not.

  2. Mark S. October 14th, 2010 at 6:58 pm

    Chris, do you see a similar pattern in intermediate Treasury yields (IEF) or mixed bonds (BND)? Being a conservative investor I keep a lot of my savings there, but I’m a little nervous about that right now. I don’t see any patterns in them, or in TIPs, just a nice steady rise… but it sure has a long way to fall. Do you see anything there?

  3. Chris Kimble October 14th, 2010 at 7:11 pm

    Mark,
    5 & 10 year yields are on similiar support, per the bottom of a long-term falling channel, just like the 30-year, with the only break the 2007/08 financial crisis low.