How Are Bonds Looking Ahead Of Fed?

Published 03/20/2018, 08:58 AM
Updated 07/09/2023, 06:31 AM

The big Fed announcement/press conference/dot plot update isn’t until tomorrow, but let’s take a quick look at how bonds are doing in advance of the big day.

I confess I was getting jumpy about the strength bonds had been showing, including a pretty decent-looking basing pattern. Mercifully, a long-term trendline saved the day. Look how clean the repulsion is away from that trendline:

ZB Close

Stepping way back, into a multi-decade view, you can see how bonds have broken a very long-term trendline, which I think pretty much spells doom for bonds (and party-time for interest rates). You can compare the “beneath the trendline” price action by observing the tinted areas in the respective charts.

ZB Break

My bet is that once the dust clears after Powell’s debut tomorrow, you’re going to see bonds continuing to weaken.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.