Diversify Yo Bonds!

JC Parets
July 26, 2022

A funny thing happened this Spring.

Inflation expectations peaked. Our equally-weighted Commodities Index peaked. And then the Copper/Gold ratio collapsed.

All of these point to lower Interest Rates.

And so here we are with the US 10yr Yield struggling with those 2018 highs.

When you look out further, you can see the same dynamic taking place in the US 30yr Yield.

Look at $TYX unable to get through those 2018 highs:

And when you zoom in to the 5yr Yield, it looks exactly like the other two - struggling to get through its 2018 highs.

Have we seen the highs for the year in interest rates?

Do bonds longs continue to work throughout the back half of the year?

So far so good.

But do you agree this continues?

Let us know what you're thinking!

- JC

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Premium Members can download the Q3 Playbook in full here.

This Playbook is more designed to get structural perspective on markets, while our Mid-Month Conference Call this week focuses on the more tactical opportunities.

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