Bond Yield Base?

By | May 11, 2015

There is a consensus building that bond yields may be forming a bottom and are headed higher over the intermediate to long term. The weekly chart of the ProShares UltraShort 20+ Year Treasury (TBT) shows the ETF breaking above an 18 month downtrend line, its 40 week (200 day) moving average, and the rim line of a cup and handle pattern that has been forming since the beginning of this year. Both the Relative Strength Index and the Money flow Index are tracking above their centerlines, reflecting price and money flow momentum. The ETF certainly looks like it is attempting to transition out of its current downtrend to a more neutral condition, and this process is likely to see some horizontal movement and require some time.

55511. TBT chart

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