Bonds Hanging on by the Fingertips

US Treasury Bonds come into the last day of August hanging onto support by the ends of their fingers. With the low volume summer days reaching their peak ahead of the Labor Day Weekend, one cannot expect much to happen today. The financial media will do their best to whip up a frenzy whispering the word tariff or valuation, but the big money crowd has been in the Hamptons all week with the 90 degree weather. They are unlikely to put down their vodka tonic’s for the same ole same ole.

So what will happen with Treasury Bonds then, after everyone comes back tanned and rested? It really is not an easy question to answer. The price action shows that they have been consolidating at support for 7 months. This is happening at the bottom of a 30 year long rising channel and the 100 month SMA. Both have been key spots where reversals in price have occurred.

Momentum remains weak with the RSI cruising along sideways in the bearish zone and the MACD falling and negative. The RSI is not gonna give you a reason to watch. But the MACD is getting to extreme low levels and is starting to flatten. Too early to buy Bonds but it does suggest you start watching. Of course Bonds could just keep moving sideways befuddling everyone. A move back over 147 would suggest a reversal. A break under 140 that continuation to the downside has begun. Until then, enjoy the weekend!

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