Banks do better in a high interest rate environment. The US central bank is going to be reducing its balance sheet by selling US bonds. As the yield curve steepens, interest rates rise. If reflation holds (DXY falls, interests rates rise AND it doesn't crash the market), banks could do very well. Watch for upward resistance here. The european banks are up...
I posted this as neutral because it can go either way from here. I shorted the future 2 days ago but did not buy TMV in my 401k.
For those who are short, this is a take profit area if support holds. I will put a tight stop loss here. A long position can be taken here depending on the price action. If it breaks support and the uptrend line, short at an...
If the EM bonds turn down from resistance here, this would start an EM bond bear market which would be highly significant. Yields rise = inflationary.
I can't find an EM bonds inverse ETF to short EMB in my 401k.
The first support for the 30-Year is 152 (purple line) and the next is 146 (green line). A turn anywhere above 152 in the days to come will signal a bottom and a potential run to 162.
