From the desk of Steven Strazza @Sstrazza and Ian Culley @Ianculley
Bonds are digging in at some familiar levels.
For years now, we’ve pounded the table about the importance of the 2018 highs for various risk assets.
That’s because those former highs marked significant peaks for both the stock market and certain procyclical commodities and currencies during the last cycle.
As far as the bond market is concerned, 2018 was also when yields peaked. Benchmark rates in the US are testing these old highs.
As such, it’s not the 2018 highs but the 2018 lows that we’re paying attention to when analyzing the prices of Treasuries.
A handful of bonds and bond funds are trying to find a bottom at these key former lows right now.
Let’s take a look. [Read more…]