U.S. Treasury Bond Yields Reach the Bottom, Upward Pressure Starts

By: Donald_W_Dony

The Fed has done everything possible to stimulate the economy by slashed interest rates to record lows, injecting billions of dollars into the financial system and even recently saying it will begin a program to buy up to $300 billion in government treasuries. All of these efforts have driven bond yields down to record lows. Models are now indicating that yields are on the rise.

The 10-year U.S. Treasury Bond Index reached a low in December 2008. Long-term models are suggesting that upward pressure can be anticipated over the next 5-7 months which should move the index up the target of 35. This action should be negative for bonds and signal that the peak in mid-to long-term government bond prices has arrived.

By Donald W. Dony, FCSI, MFTA
www.technicalspeculator.com

COPYRIGHT © 2009 Donald W. Dony
Donald W. Dony, FCSI, MFTA has been in the investment profession for over 20 years, first as a stock broker in the mid 1980's and then as the principal of D. W. Dony and Associates Inc., a financial consulting firm to present.  He is the editor and publisher of the Technical Speculator, a monthly international investment newsletter, which specializes in major world equity markets, currencies, bonds and interest rates as well as the precious metals markets.   

Donald is also an instructor for the Canadian Securities Institute (CSI). He is often called upon to design technical analysis training programs and to provide teaching to industry professionals on technical analysis at many of Canada's leading brokerage firms.  He is a respected specialist in the area of intermarket and cycle analysis and a frequent speaker at investment conferences.

Mr. Dony is a member of the Canadian Society of Technical Analysts (CSTA) and the International Federation of Technical Analysts (IFTA).

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