From the desk of Ian Culley @IanCulley
Buying bonds is finally becoming an attractive proposition again.
For months, we’ve noted the lack of confirmation from intermarket ratios such as copper versus gold, regional banks versus REITs, and high-yield bonds versus US Treasuries.
These ratios typically trend in the same direction as interest rates. But this hasn’t been the case since last year.
And when we consider that yields are trapped below major resistance zones, we really like the counter-trend opportunity bonds are offering at these levels.
Let’s review a few setups from our Q3 Playbook we like for buying a bounce in bonds.