Bonds are a Buy !

It’s important to keep things simple.

With all this palaver about interest rates, people want to hear what the action is.

How is one expressing their investing view about the topic?

Bond yields are so stretched, that on a monthly basis, they are ‘this’ Overbought for only the 4th time in 35 years (as expressed in the U.S. 5 year bond yield chart with those circles on it)

If you like fixed interest, then you may consider buying a Bond ETF which owns a spread of such bonds…..

because, inversely those bond prices are at extremely Oversold levels, as the Monthly chart below shows.

I have posted a chart of one of those U.S. traded bond ETF’s

This is the case across the 5, 10, 20 and 30 year maturities.

Disclaimer: not personal advice, do you own research or speak to a licensed professional.

September 27, 2022

by Rob Zdravevski

rob@karriasset.com.au

The bond herd is arriving

Much hoopla about U.S. interest rates

Perspective is required.

U.S. year bond yields have never seen 8 consecutive weeks of rising yields. Stocks and Commodities tend to see streaks lose steam in the 7th or 8th consecutive week.

We are closer to the streak ending.

The U.S. 10 year bond yield has never been Overbought on a Monthly basis, until now.

The U.S. 10 year bond yield has never been extended this many percentage points above its 50 month moving average.

The U.S. 10 year bond yield is near to trading up to 2.5 standard deviations above its rolling monthly mean for only the 5th instance in 40 years.

September 26. 2022

by Rob Zdravevski

rob@karriasset.com.au

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