Bond yields (interest rates) remain elevated. So that means bond prices remain lower.
Today, we look at the 20+ year treasury bond ETF (TLT) to highlight what’s happening in the long-dated government bond market.
And, most important, we discuss a critically important price area for TLT to hold… because, if prices break down below this area, it may mean a jump in interest rates.
And that will not bode well for the consumer.
Note that the following MarketSurge charts are built with Investors Business Daily’s product suite.
I am an Investors Business Daily (IBD) partner and promote the use of their products. The entire platform offers a good mix of tools, education, and technical and fundamental data.
$TLT 20+ Year Treasury Bond ETF Chart
Treasury bonds have traded in a range. This range when inverting to treasury bond yields (interest rates) has equated to 3.75% to 4.5% on the 10-year treasury bond yield. This rate is important to mortgage rates and auto loan rates.
So, when TLT bond prices are low, rates are higher. And if bond prices fall through their lower band of support, it could mean much higher interest rates. Stay tuned.
Twitter: @andrewnyquist
The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
