Are The Bond Vigilantes Back?

Jesse Felder profile picture
Jesse Felder
4.36K Followers

Summary

  • For the past 30 years or so, the yield on the long bond has formed a fairly neat channel that has only been violated relatively briefly at times.
  • In reversing from its low two years ago, the 30-year yield has also formed a pretty clear inverted head and shoulders pattern, so it appears we are at a crucial spot for the multi-decade bond bull market.
  • It would also indicate that, after a very long hiatus, the bond vigilantes may have returned and are determined to pressure a Federal Reserve that has fallen further behind the curve than ever before.

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The long-term chart of the 30-year treasury yield may now be the most important chart in the world. For the past 30 years or so, the yield on the long bond has formed a fairly neat channel that

Bond Vigilantes

This article was written by

Jesse Felder profile picture
4.36K Followers
Jesse has been managing money for over 20 years. He began his professional career at Bear, Stearns & Co. and later co-founded a multi-billion-dollar hedge fund firm headquartered in Santa Monica, California. Today he lives in Bend, Oregon and publishes The Felder Report.

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