Bond Market Cycles

Ignore time at your own risk. Below is an illustration of one short-term cycle approaching in US long bonds. The end of the up cycle in bond yields is approaching. In other words, the probability of a breakout of the inverted head and shoulders in 2010 is decreasing.

30 Year US Long Bond Yields:


Soon we will enter a period of strength for bonds. A window of strength, in turn, will have intermarket influences on other capital markets. The two boxes represent similar periods within a liquidity-driven or jobless recovery.

S&P 500 to US Long Bonds Ratio: