Warning: US Yields Sliding

This scenario of falling US yields is hardly on anyone’s radar. Stocks of the U.S. banking sector began to slide downwards.

The TLT is the major US government bond ETF.
A rising TLT, means falling US yields. A falling TLT, means rising US yields.

At USD 138.50, there is a long-term relevant, inner support line in the market. Since the end of February, the price has been swinging in the area of this support. A chart-technical bottom has formed, from which the price today begins to break out dynamically in line with the rules to the upside. A short- to medium-term rise of the TLT towards USD 148-150 is expected. Thus, a short- to medium-term rise in U.S. Treasuries. Vice versa, a short to medium term slide in US yields is expected. I am curious. Hardly anyone has this scenario on the radar.

The rise in Treasuries/bonds had direct implications in the US equity market today. Stocks of the U.S. banking sector began to move downward.

iShares 20+ Year Treasury Bo
iShares 20+ Year Treasury Bo
US 10Y Bond Yield

Hayato Ishikawa Send an email

Mr. Ishikawa has more than 25 years of experience in the financial markets, focusing on stocks, real estate, cross-asset risk hedging, and business founding. He is co-founder of a private investment group - specializing in the western pacific region and an independent analyst as well as business advisor. Mr. Ishikawa is known for bringing technical and fundamental analysis as well as sentiment into a coherent overall assessment - unbiased financial and political journalism made in Japan.
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