Bonds are moving down hard

December 19, 2017 03:40 PM

I have been waiting for THE BIG bond move lower over the past several months and this may be the first leg of that move. The U.S. bond prices are sliding hard today and if they break the major trendline annotated on the above chart we could see massive selling down to the mid to high 140's. The market, I believe, is very much behind the interest rate curve. The 10 yr note yield is too low in this environment in my opinion.

Stocks remain near all-time highs but are retreating slightly today. Nothing major at all.

Energy remains strong, as all dips recently have been supported by buying. Gold may start to trickle lower as well for similar fundamental reasons as U.S. bonds. I would not be surprised to see gold approach $1,100 next year.

U.S. 30yr bond futures chart


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