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October 06, 2005
Big Support Bounce for Rates
Richard Suttmeier of TheStreet.com advises that the bond conundrum may be ending as the yield on the 30-year treasuries challenges its 200-day moving average. This monthly charts shows TYX challenging its 12-month SMA, but in a clear long-term downtrend. The current decline from 5.6% to 4.15% carried TYX to support and a big double bottom could be forming. An outside reversal formed at the end of July and further strength above the gray trendline extending down from May-04 would be bullish for yields (bearish for bonds). This would also fuel the inflation argument and be bullish for gold.
Posted by Arthur B. Hill at October 6, 2005 07:01 AM