As the market endured heavy selling on Monday, bonds provided a safe haven. They were bid on most of the day, though there was some selling towards the end of the session and yields fell a bit (the 10-year yield closed at the lowest level in a month).
Many investors have been concerned about a higher supply of bonds coming on line, yet when equities see concentrated selling, it’s no wonder money flees for bonds.
The TLT chart shows a modest uptrend but stopped firmly at the 200 ma. Notice the heavy money flow into bonds and strong momentum indicators. A move above 200 ma would put more pressure on yields.
20 Year Bond ETF (NYSE: TLT) Video Chart Analysis
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About 20 year Bond ETF
The investment seeks to track the investment results of the ICE U.S. Treasury 20+ Year Bond Index (the “underlying index”). The fund generally invests at least 90% of its assets in the bonds of the underlying index and at least 95% of its assets in U.S. government bonds. The underlying index measures the performance of public obligations of the U.S. Treasury that have a remaining maturity greater than twenty years.
