U.S. Long Bond: Panic Buying

30_10_Price_Ratio

The demand for long-term Treasury bonds has reached panic proportions. A casual inspection of price history suggests that the rally since December 2013 is “too steep, too fast.” An alternative measure of intensity – the ratio of 30-year to 10-year bond prices – is also flashing red. The price of 30’s relative to 10’s is rising at a pace not seen since the panic of 2008. Can an important top be far ahead?

By | 2015-01-29T12:20:57+00:00 January 29th, 2015|Categories: Market Strategy Report|Tags: , , , |1 Comment

About the Author:

Mark Ungewitter is a Senior Vice President & Investment Officer at Charter Trust Company. He was formerly Director of Portfolio Management at Investors Bank and Trust in Boston, Massachusetts. He holds an M.S. from Bentley University and a B.S. from Massachusetts College of Liberal Arts. He is a member of the American Association of Professional Technical Analysts.

One Comment

  1. MoneyBasicsSteve January 30, 2015 at 6:42 am - Reply

    Mark, I am very glad you posted this view. I have been getting increasingly uncomfortable with bond prices. In late 1999 there was no explanation as to why someone would pay such high prices for new tech companies. In 2007, there was no explanation as to why someone would borrow so heavily on real estate. I am wondering if we are seeing the same irrational drive to long term Treasury?

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