The spike in interest rates last week was just the beginning of a major rally.
Two weeks ago, we said interest rates were setting up for a surprise move.
They had been falling all year. And most analysts were expecting rates
to continue even lower, or at least remain at their depressed levels.
But we said rates looked poised to rally. Last week, they started a new
uptrend.
And that's bad news for bonds...
Take a look at this chart of the 30-year Treasury bond yield...
As you can see, the 30-year Treasury yield broke above the blue
down-trending resistance line in early June. It tested that line as
support two weeks ago. Support held, and rates blasted higher last week. (more)
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