With Treasury Yields Up 110% From Their Two-Year Lows, Are Bonds Bottoming?

From Chris Kimble: Is the bond bull market of the past 30-years over? Are we seeing just the start of a trend higher in interest rates or are they about to blast off?

This isn’t the million dollar question, its the “Trillion Dollar” question as U.S. Government debt continues to skyrocket.

Below takes a long-term look at the yield on the 10-year note (TNX) as well as a look at how large of an increase in rates have taken place over the past 84-weeks

The yield on the 10-year note is up 110% over the past 84-weeks, which is the largest yield rally in this short of a time period in a couple of decades. This sharp rally now has yields testing the top of a 25-year falling channel as well as at the top of its 5-year trading range at (2). Is the just the beginning in a rate rise of a short-term ending?

Below takes a peek at what hedgers are doing in the 10-year Treasury Note from Sentimentrader.com

Hedgers look to have a crowded trade in play at this time. Over the past 10-years when they were positioned like this, the 10-year note was more often closer to a short-term low than high. Will it be different this time?

With the U.S. Government debt now exceeding $20 Trillion, what the 10-year note does at the top of its 25-year rising channel, is very important.

The iShares Barclays 20+ Yr Treas.Bond ETF (TLT) closed at $118.71 on Friday, up $0.64 (+0.54%). Year-to-date, TLT has declined -6.42%, versus a 2.34% rise in the benchmark S&P 500 index during the same period.

TLT currently has an ETF Daily News SMART Grade of C (Neutral), and is ranked #21 of 28 ETFs in the Government Bonds ETFs category.

Next Wednesday we are conducting a private briefing exclusively for our blog subscribers. This situation/opportunity in interest rates/bonds shared above will be one of the topics of discussion. We will also discuss numerous opportunities in stocks, Metals, and Crude Oil  Markets. Click HERE to register for the webinar.

This article is brought to you courtesy of Kimble Charting Solutions.

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The article With Treasury Yields Up 110% From Their Two-Year Lows, Are Bonds Bottoming? was originally published at ETFDailynews.com.