Bond Technical Strategy – Weekly by Lloyds TSB

The main strategy of looking for lower core and peripheral bond yields continues and until the technical signals indicate otherwise, this remains the bias.

The main strategy of looking for lower core and peripheral bond yields continues and until the technical signals indicate otherwise, this remains the bias. The reason for lower yields is something that could be be debated at length, but the one element is the worsening technical outlook for equities and the prospect of an accelerated correction as we move into the cyclically sensitive September/ October period. With heightend volatility in the FX space, there is a
sense of ‘sell first and investigate later’* pervading the market.
This mindset has certainly accelerated the moves into bonds and with commodities continuing to retrace, bonds continue to have solid underpinnings.

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