Treasury Bonds: The Correct Play Is To Be Long (February 23, 2010)
What I Am Watching (Part 1): TBT and TLT (April 13, 2010)
Similarly, Treasury bonds have yet to bust out, or conversely, Treasury yields are just hanging on by their finger tips as well. This can be seen in the weekly chart of the Ultra Short 20 + Year Treasury ProShares (symbol:TBT). See figure 1. This is a 2x leveraged ETF product that tracks inversely to the daily performance of the Barclays Capital 20+ Year U.S. Treasury index. The black dots are key pivot points.
Figure 1. TBT/ weekly
TBT is sitting right at support of 36.26. A definitive close below these levels would likely lead to much lower yields and a flush in the equity markets as well. It is no coincidence that Treasury yields are in lock step with equities. This would be a continuation of the secular move in Treasury bonds that started several months ago.