There's been no shortage of commentary recently on the rallying bond market, but we thought it would be useful to highlight just how much well the fixed income asset class has been doing. Here again we use our trading range screen to highlight the overbought levels of the various bond ETFs that we track.
As shown below, Treasury ETFs of all durations are basically trading two standard deviations above their 50-day moving averages (2 standard deviations above is where the light red shading meets the dark red shading). The only fixed income ETF shown that is below its 50-day moving average is HYG, which tracks the high-yield (junk) market. Is fixed income due for a pullback?
click to enlarge