- New Science in old markets -

US bonds and notes

The two principle longer-term US treasury instruments both shot up in value today and extended. Yields are the best way to examine ten-year notes and thirty-year bonds because of their long continuous history and it is these series that produced the extensions:

Bond and note yields extend

Yields fall as prices rise in fixed-income markets so these are bottom extensions in yield, not top extensions in price but the effect is the same. This has the look of a 'last gasp' rally from which prices should retreat, perhaps for quite a while. Sell either one 'at market' to establish shorts. The high of today are already over 2 points above here in notes and 4 points in bonds but it seems unlikely that those prices will be available again in the near future which is why we advise selling at market or on the smallest rallies.

RE