On 10/21/22 US Traesury Bond futures made a new bear market low.
On 10/21/22 the high yield bond fund HYG was decisively above its 10/13/22 bottom.
US Treasury bonds are the highest quality.
High yield bonds sometimes called "Junk bonds" are the lowest quality.
Junk bonds should be leading the way down. They are not.
This significant divergence could be a signal of a bond rally and interest rates falling.
Mark
On 10/21/22 the high yield bond fund HYG was decisively above its 10/13/22 bottom.
US Treasury bonds are the highest quality.
High yield bonds sometimes called "Junk bonds" are the lowest quality.
Junk bonds should be leading the way down. They are not.
This significant divergence could be a signal of a bond rally and interest rates falling.
Mark
Comment:
Note - the top chart is HYG. For some reason the label I put on the chart has tiny print.