Bond Outlook

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As with just about every other asset class, bonds have been bouncing strongly over the past week, but I think that – – again, with just about every other asset class – – the bounce is nearing an end. Take note of the descending channel bonds were trading within ever since last May. It broke the channel on June 19th, and I think the lower trendline is going to represent resistance now. We are approaching this trendline, as well as another spanning back to August 19, 2011, which I believe provides a strong pivot point to repel prices downward.