Thursday, 22 January 2009

Government bonds in the US are not longer 'hot'

We have a bank crisis. And a strong dollar. But is there any flight to safety? No. The American Treasury bonds are not sought and declining in price. So the paper is sold in an era that the FED tries to organize so-called quantitative easing?
If we look to the 20+ year Treasury Bond Fund iShares, one will notice that the price of this fund is declining (so rates are going higher). An attempt was made to get out of the negative trend but unsuccessfully. The downtrend visible in the 60 minutes has now also become clear in the daily renko chart.


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