A Tone Change In Long-Term Rates

February 8, 2017

TLT is within a day’s rally of an important resistance, a midpoint Hidden Pivot at 121.28 (see above) that is associated with a target at 124.23.  If that last number were to be achieved, it would correspond to a drop in T-Bond rates to 2.83% from a current 3.02%. It is what happens after that that’s important, however, since the target is compelling enough that we should expect a tradable pullback from it.

If instead the futures push past 124.23 with little effort, especially after a stall that has lasted less than three days, it would strongly imply that the felicitous trend in long-term rates is likely to continue.

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Gold weakens on global cues and lackustre demand