Chart Of The Week: Bonds Versus Oil

By |2016-12-01T15:45:05+00:00January 21st, 2015|Categories: Technical Perspective|Tags: , , , , |

Summary Important bottoms in crude oil have often matched important bottoms in Treasury yields. The bond market seems intrinsically stretched in context of its multi-decade progression. Long-term bonds are especially risky during the late stages of oil-market crashes. While many factors influence the bond market, it's worth noting that cyclical bottoms in oil prices (NYSEARCA:USO) have often matched cyclical bottoms in long-term Treasury (NYSEARCA:TLT) yields. The oil crashes ending in March 1986, December 1998 and December 2008 [...]