We have seen the stock market rally over the past five weeks and bonds have rallied too. I think that the bond rally has about run its course. Usually bonds go up as a safety trade when their are global tensions, but bonds simply got hit hard into the afternoon despite the US/China news, which would suggest that their recent rally is over. I think this is a simple ETF trade to do in order to bet against bonds, which have been in a bear market this year. I think the people buying bonds for a Federal Reserve pivot have about bid them up as far as they can go.
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-Mike
