US Bonds entering a Bear Market? From a Bloomberg report by Cordell Eddings
"The yield on the benchmark 10-year Treasury note may climb as high as 6 percent over the next two years, according to a Citigroup Inc. report citing technical indicators.
We continue to believe that we have entered a bear market that will see 10-year yields much higher over the next 12 to 24 months, analysts led by Tom Fitzpatrick in New York wrote to clients in the report, dated Dec. 17. This would be particularly true if the Fed were to move to adjust policy earlier than expected but could also be true if the fiscal picture remained stressed in the coming years.
Government securities fell as Chinese central banker Zhu Min on Dec. 17 said that the U.S. cant expect other nations to increase purchases of Treasuries to fund its entire fiscal shortfall."
At http://www.bloomberg.com/apps/news?pid=20601087&sid=aVL1dlkugFQI&pos=1
Worth keeping in mind. Could give us some good trading opportunities.
Eric De Groot had this to say:
"TBT price and volume continues to confirm a breakdown of the small head and shoulders formation. The neckline of the large head and shoulders formation and the 1982 trendline as illustrated by the Shearson Bond Index (SLBI) are now pulling hard. This implies upward pressure on yields into 2010. IMO, the bond market remains the canary in the coal mine for the U.S. dollar and other key markets."
He also provides some good charts at http://edegrootinsights.blogspot.com/2009/12/ta-long-bonds.html
