What's going on with bond prices?

Discussion in 'Economics' started by RGLD, Jun 16, 2021.

  1. RGLD

    RGLD

    The 30-year peaked last April and thus have been on a steady decline ever since than. We've had low interest rates for a while. Wouldn't low interest rates = High bond prices? Doesn't look like it. Now that the fed hints it'll start hiking rates in 2023, wouldn't bonds go down even more? Or do you think it's already factored in? This is the weekly chart...

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    oxhimang and Nobert like this.
  2. Overnight

    Overnight

    Nobody is factoring in 2023 at this time, especially on a "hint".

    You going to park your money in low-yield bonds for two years while other sectors of the market have sniffed glue and keep rising higher, giving you an effective better yield over those two years?
     
    zghorner likes this.
  3. RGLD

    RGLD

    Jim, so you're saying people have been stuffing all their bond money into the stock market instead since April 2020 and thus market hit new highs while Bonds declined. Do ya think if bonds go any lower, Market's gonna have a correction?
     
  4. oxhimang

    oxhimang

    Fascinating to see how bond prices have moved over the thirty years. Wish the price to go positively.
     
  5. xandman

    xandman

    Where would interest rates go?
     
  6. Overnight

    Overnight

  7. RGLD

    RGLD

  8. Overnight

    Overnight

    Looking at a 3Y chart of the thing, it looks like a good entry point from strict TA perspective. Get out when it hits 150-155ish or so, and get back into equities! Get ready for the Q4 spending splurge!
     
  9. RGLD

    RGLD

    I was thinking bitcoin afterwards... lol But you don't talk about it that much on your show. Technicials look like it's bottoming out, but it'd probably take months before it's ready for another rally.
     
  10. Overnight

    Overnight

    I could play with that Jim idea and have fun with it, but it would be disingenuous. Like how my wife left her iPhone in her pants while it went through the wash. (From around March of this year on the morning Squawk)
     
    #10     Jun 18, 2021