Here's a chart of the 30 year Bond, which is in an uptrend
channel, however it appears that a large inverse H&S pattern
has formed.
Remember Bonds and Rates are inverse to one another, therefore
the 10 and 30 year Yield/Rates have a bullish inverse H&S
pattern. The move in long term rates is why we have TBT on
the watchlist.
If rates go high enough, that could cause some speculative money
to come out of the market over time.
thanks for the explaination and illustration with the
charts. I understand the relationship between bonds and
rates. What is there a typical affect to the US dollar?
An increase in rates is normally because of improvements (or
anticipated improvements) in economic activity. Rates increasing
typically portends a stronger dollar. However, rates can also rise
when new bond issuances grow too rapidly (supply exceeds
demand).
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Interest Rates And Bonds
Posted by matt on 6th of Apr 2010 at 01:10 am
Here's a chart of the 30 year Bond, which is in an uptrend channel, however it appears that a large inverse H&S pattern has formed.
Remember Bonds and Rates are inverse to one another, therefore the 10 and 30 year Yield/Rates have a bullish inverse H&S pattern. The move in long term rates is why we have TBT on the watchlist.
If rates go high enough, that could cause some speculative money to come out of the market over time.
thanks for the explaination and
Posted by amp43679 on 6th of Apr 2010 at 01:39 am
thanks for the explaination and illustration with the charts. I understand the relationship between bonds and rates. What is there a typical affect to the US dollar?
An increase in rates is
Posted by steve on 6th of Apr 2010 at 09:02 am
An increase in rates is normally because of improvements (or anticipated improvements) in economic activity. Rates increasing typically portends a stronger dollar. However, rates can also rise when new bond issuances grow too rapidly (supply exceeds demand).