In the chart below you have the TIP and IEF the IEF ratio. IEF is Ishares 7-10 year treasury bond ETF and TIP is the TIPs bond etf. On the right side of the chart you have the 10 year inflation breakeven. Now looking at the two you can see that they track pretty closely. Now generally the IEF 7-10 year has a very similar duration to that of the TIP etf.
Some...
MA 200 in one-week candles appears to function as support In addition to the horizontal support line
This ETF reflects 7-10 Year Treasury Bond - Just look how it's related to SP500 index!
Junk bond spreads have been at historic lows, representing no stress evident in the credit markets. But lately, the $JNK : $TLT relationship is turning. Could this be a hint from the credit markets that we are moving towards a risk off (or reduced risk) environment? Watch the chart and accompanying RSI against key levels as a clue.
Keep an eye on the relative strength of TIPS vs IEF as a measure of inflation expectations. Watching both real and nominal interest rates can be helpful in assessing future prospects for commodities and other real assets.
This will be a relatively detailed idea, but bear with me. There will be plenty of charts that speak for themselves, so I'll try to keep it as short as possible. Since everything is connected, the analysis will contain three parts, including yields, inflation, macro indicators. I will post an additional analysis of equity factor performance during rising yield...
NASDAQ
