The U.S. treasury bond market is one of largest and most important in the world. And with interest rates becoming a daily topic of conversation with investors, it’s a must-watch now.
And even more interesting is that treasury bonds fell (and interest rates rose) following the Federal Reserves 50-basis point cut!
Today, we take a look at the bond market via another another indicator: it’s correlation to the Japanese Yen.
Below is a chart highlighting the correlation between the 20+ year U.S. Treasury Bond ETF (TLT) and the Yen.
Both have performed poorly, creating bearish price reversals and breaking near-term support. BUT it is important to note that the correlation between the YEN and TLT remains high.
Perhaps it’s worth putting the Yen on your radar for signs of continuation or a potential change in the bond market. Stay tuned!
Japanese Yen and Treasury Bond ETF (TLT) Correlation Chart
Twitter: @KimbleCharting
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.
