Bonds oversold throughout the curve pic.twitter.com/U1mUibJwgJ
— Strategas (@StrategasRP) April 6, 2022
Today’s Chart of the Day was shared by Strategas Research Partners (@StrategasRP). Strategas points out that the sell-off in Bonds is reaching extreme proportions. All three of these popular Treasury Bond ETFs ($SHY, $IEF, and $TLT) are more than 3 standard deviations below their 200-day moving average. It’s rare to see Bonds so stretched to the downside, but mean reversion has started to work its magic after reaching these levels in the past. The trend for Bonds is still clearly lower, but the stage has been set for a potential rebound.