Quick Observation: Bonds Might Get A Bounce Here - John Rothe | Portfolio Manager, Quant, Tech Geek, And Sometime Superhero To My Kids

Quick Observation: Bonds Might Get A Bounce Here

Despite news/speculation that the Fed may start tapering its bond purchasing program, traders may be looking for a bounce at current levels. Bond indices are at or approaching long-term trend lines:

US 30 Year US Treasury Bond:

30 year bond


iShares Barclays 20+ Year Treasury Bond Fund (“TLT”)

tlt CBOE Interest Rate 10-Year T-Note:



Traders may be looking at these current levels for a bounce. ETF inflows for September show some interesting trends.

Ishares 3-7 Year Treasury Bond (“IEI”) and the Proshares Ultra 7-10 Year Treasury (“UST”) ETFs are showing large inflows month to date. In addition, we are seeing iShares TIPS (“TIP”) ETF – which are typically used as a hedge against inflation – showing outflows during the same time:

etf inflows


This may be an indication that traders are looking for a bounce as the market tests some of the historical trends that we are currently approaching.


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