Will bonds bounce?

24 Şub 2021

After a devastating drop due to rising 10-year yields, the VGLT treasury bond fund is sitting right atop strong support at both the 200-week moving average and the 50-month moving average:



My guess is that for purely technical reasons we get a little bounce from here, with a green day for bonds and a red day for financials tomorrow.

24 Şub 2021

Not

VGLT is down 1.5% premarket. An intraday bounce to above the EMA support levels is still possible, but this premarket move does not inspire confidence that support will hold. Looks like we may just drop straight through this support.

24 Şub 2021

Not

Working on an intraday bounce, seems like.

25 Şub 2021

Not

Treasury yields briefly surpassed the S&P 500 dividend yield today, making it arguably more likely that we'll see some rotation out of equities and into bonds for safer yield.

26 Şub 2021

Not

Took a few days, but we have indeed seen a significant bounce from the 200-day moving average level. Makes me wish I had bought with more conviction; I only picked up a couple shares.