It has been a breathtaking run for bonds, as seen here via the TLT fund. It bottomed at 92.52, around the time the Greek parliament saved Europe (ha! ha, ha!) From then, one might be seen as one of the most boring financial vehicles on the planet (after all, we're talking about a non-leveraged fund that trades in risk-free government securities………..), it rallied over 18% in just over a month (!!!!!!!!) To say nothing of the fact it pays a 4% dividend anyway.
But all good things must come to an end, and I think TLT has reached its technical target. Easing back to at least the upper 90s would make sense at this point, which would line up nicely with continued strength in equities as we prepared for the Short Of The Decade Event.
