Fixed Income

Wednesday, February 23, 2011

Updates - 30-yr US Treasury Bond - Recovering from a downfall

RSI on the weekly chart showing higher targets for the 30-yr treasury bonds.  It may take a short breather before continuing the rally as indicated by the RSI on daily charts touching new high in the overbought zone.






























Monday, February 21, 2011

Updates - 30-yr US Treasury Bond - Recovering from a downfall

Heightened disturbances in Middle-East have led to decreasing yields (rising prices) of Treasury bonds.  Its back to a level of 119.6 but faces 50 DMA resistance at 120.  Besides, the rumors that Portugal would need more injection are leading to its rise which can continue for sometime.
















Tuesday, February 1, 2011

Updates - 30-yr US Treasury Bond

Good quarterly results and ISM data brought the prices down to 119.5 (which is a good support) and provided a good buying opportunity.  Currently trading at 120.53.  Hold it for higher targets.  Also, the bonds rose from 114 to 137 and then dropped to 119 which gives us a 78.2% retracement (Fibonacci), making 119 -119.5 as a very good support zone.

















Monday, January 31, 2011


30-yr US Treasury Bond

Technicals:  The bonds are in a buy zone between 119.5 and 122.  Because rising from 114 to 136 and then coming down to 119 gives them a 77.2% correction (Fibonacci), they seem to have more upside than downside.

Fundamentals:   If good news regarding jobs hits the markets, the bonds yields would increase, lowering their price but as it doesn't seem like happening and the FED would have to increase rates to fight slowly rising inflation, Treasury Bonds can be a good buy in the fixed income segment of portfolios.

Opinion:  Buy Treasury Bonds between 119 and 122 for targets 122.25 and 123.75



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