2 replies to this topic

[redfoliage2]

To the contrary of the recent hype that T-bonds have bottomed they are likely to test 200 wma on the weekly chart:
http://stockcharts.c...p...2878&r=8870

[eminimee]

I tend to agree with that....even with a bullish count....we need another low....

I've had to put the 15 min in line form to get the spikes out of it...there were too many on a candle chart.

Rough idea anyways...



http://stockcharts.c...7686&r=4325.png



http://stockcharts.c...0579&r=1044.png

[jawndissedi]

"The important point to grasp about bond yields is that they have been so extraordinarily low in recent years that this week's swing has merely brought them back to more "normal" levels. But while this may be reassuring news, in one sense, there is another crucial aspect that may have more unsettling implications: volatility has blown back into the picture.

This is significant because, in recent years, bond yields have not only been unusually low but also relatively stable. That has helped to promote low volatility across many other asset classes. Indeed, the climate has been so calm that some central bankers have dubbed this decade the era of the "Great Moderation."

Until this week, most investors apparently expected this to last for the foreseeable future. Consequently, asset managers around the world have devised numerous strategies to cope with a low-yield world - such as purchasing complex and risky instruments to get better returns. That, in turn, is one reason the bankers in Barcelona were celebrating a bumper year. But the squall has challenged the foundations on which some of these investment strategies were based. "These movements have come as a real surprise to the market," a senior US policymaker observed to me in New York last week. Investors, in other words, have been reminded that the era of "Great Moderation" may not always remain moderate.

Financial Times

Edited by jawndissedi, 18 June 2007 - 09:04 AM.