T-Bonds ... Waiting for the drop

27. Apr. 2021

The treasury markets have lots of faith in the Fed view that inflation will be transitory and rates will be held low. Bond prices continue to grind higher, ignoring housing prices, increased wages and prices for grains,industrial metals, and even coffee. The end to regulatory pandemic relief, the promised tapering of bond purchases and strong economic indicators are all bearish for bonds. Stellar economic news and job updates are bound to catch up to the long bond. But with Fed support still in place, patience is key. Pick your entry points and target prices in advance. First critical support for a potential reversal trade is 157-24 goes. The bigger trade if 155-28 goes.