What could scare the U.S. Bond market and cause outflows to increase?

CLICK ON CHART TO ENLARGE

Government bond funds have been experiencing outflows of late. 

Copper is pushing above resistance and the CRX (Commodity) index is up against falling resistance.  If Copper keeps pushing higher and Commodities (CRX) breaks out, the yield on the 30-year bond should continue to increase and odds are high this will scare government bond owners into thinking growth or inflation is at hand.

A breakout in the CRX & Copper should lead to increased outflows in the Govt bond market, resulting in lower bond prices.

 

-

Comments are closed.