When treasury bonds are rising, interest rates are falling. And typically this is a sign of bonds being a safe haven.
Recent action in the financial markets has seen bonds rising, rates falling, and higher volatility in the stock market as investors try to make sense of it all.
Well, today we offer a correlation that may provide some help in this regard: The Japanese Yen currency versus the 20+ year treasury bond ETF (TLT).
It’s important to note that the correlation between the Yen and TLT has been high the past couple of years (see below).
And both are rising as the equity markets experience increased volatility and confusion.
More important, the Yen is testing breakout resistance at (1). And TLT has been tracking closely.
SO… what happens at (1) going forward should have a significant impact on TLT. And the broader market! Stay tuned!!
Chart 2-pack: Japanese Yen versus Treasury Bonds $TLT
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The author may have a position in mentioned securities. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
