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Bonds rally into resistance – sell Gilts too

30-year US bond futures traded up to 155 24/32 earlier this morning. This is just above the level at which we advised selling all government bonds bought earlier in the month and going short. We would not advise short-selling the Eurozone government bonds as QE is still providing support but we did advise selling the US. We now add advice to short-sell UK Gilts (Gilt-edged securities - the UK's Treasury bond) for similar reasons. Both US and UK bonds have compressed, dropped, bottomed and are now back up in resistance from their old compression. To some extent this is the same trade as these two will undoubtedly move together - no matter, be short both.

Bonds and Gilts