As of this post 30-yr bonds are probing the down sloping trend line that has capped rallies since the first week of December. With a settlement above the 9 and 20 day MAs we?ve seen today I expect a trade higher. The inverse relationship to equities also would support a move higher. My suggestion is to use the Fibonacci levels as your targets on the way up. As opposed to gaining bullish exposure I would prefer to be a seller from higher levels.
While this is a chart of 30-yr bonds I am setting clients up to establish bearish positions from higher levels across the curve. That ranges from on the long end with 30-yr bonds all the way to the short end with Euro-dollars? contact me for specific strategy, risk levels and profit objectives. I am not in the camp that there is a bubble in the debt complex but it is very possible that the multi decade bull market has ended so if not willing to trade futures/options perhaps lighten up on your bond portfolio as it could be a $hit storm if and when yields start moving higher. In full disclosure that may not be for several years so don?t think there will be instant gratification?just my opinion.?