2015: A Bearish Year for Bonds
It’s been rough sledding for bond investors so far in 2015…
The 10-year Treasury note is the granddaddy of the bond market. It’s the most popular debt instrument in the world.
And it’s the benchmark rate that influences almost all other interest rates in the economy.
If you want to take the pulse of the bond market, this is where to start…
As you can see from today’s chart, the price of the 10-year T-note has fallen 4% year to date.
You can also see that each time the 10-year T-note has rallied, the rally has broken down.
Does this signal a major turn in the bond market?
It’s too early to tell… but right now bonds are trading bearishly. And bondholders should take note.