Special Delivery Message from the U.S. Bond Markets!
Interest-Rates / US Bonds Feb 09, 2011 - 05:59 AM GMTBy: Brian_Bloom
What happened on the bond markets today was very significant from a technical perspective.
Pure logic dictates that if investors are expecting “inflation” in the future, then the gap between long dated yields and short dated yields would be GROWING. Money in the future will be worth less than money today. Therefore the price of future money needs to be higher in order to compensate. The unarguable technical fact is that the markets signed off today that the gap between short and long yields is NARROWING. Expectations of inflation cannot be the reason for such a development.
1. Breakup in relative strength chart of 2 year yield divided by 20 year yield.
2. Strong break up in relative strength chart of 2 year yield divided by 7 year yield. 3% X 3 box reversal RS chart now in a bull trend for first time in years
3. Breakup in relative strength chart of five year yield divided by 30 year yield; involving upside penetration of highly significant pattern of triple rising tops
Conclusion: Short yields are rising at a faster relative pace than long yields. The bond markets are trying to tell us something
The chart below shows break up through triple rising tops. Very significant technically
Fight it or roll with it. Something structural changed on February 8th 2011.
I wonder what’s on the agenda for the meeting of ambassadors?
By Brian Bloom
Once in a while a book comes along that ‘nails’ the issues of our times. Brian Bloom has demonstrated an uncanny ability to predict world events, sometimes even before they are on the media radar. First he predicted the world financial crisis and its timing, then the increasing controversies regarding the causes of climate change. Next will be a dawning understanding that humanity must embrace radically new thought paradigms with regard to energy, or face extinction.
Via the medium of its lighthearted and entertaining storyline, Beyond Neanderthal highlights the common links between Christianity, Judaism, Islam, Hinduism and Taoism and draws attention to an alternative energy source known to the Ancients. How was this common knowledge lost? Have ego and testosterone befuddled our thought processes? The Muslim population is now approaching 1.6 billion across the planet. The clash of civilizations between Judeo-Christians and Muslims is heightening. Is there a peaceful way to diffuse this situation or will ego and testosterone get in the way of that too? Beyond Neanderthal makes the case for a possible way forward on both the energy and the clash of civilizations fronts.
Copies of Beyond Neanderthal may be ordered via www.beyondneanderthal.com or from Amazon
Copyright © 2011 Brian Bloom - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.
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