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Is The Bull Market For Treasury Bond ETFs Really Over?

08 November 2011 at 11:56 am by Staff     Bookmark and Share    Follow EtfExpert on Twitter

What happened to the high likelihood of a double-dip recession? It seems to have faded from bearish commentary. What happened to the notion that European policymakers would fail to agree on a plan for containing the sovereign debt virus? It appears that cooler heads are prevailing.

Not surprisingly, one is likely to read a fair amount of cautious optimism for stock assets. In fact, a large majority of Stock ETFs have eclipsed respective 50-day moving averages; meanwhile, the S&P 500 SPDR Trust (SPY) is currently trading above a 200-day trendline.

SPY 200-Day

If the environment for stocks is genuinely improving, however, then why are Treasury Bond ETFs catching a collective “second wind.” Whereas one might view 10-year yields of 2% and 30-year yields of 3% as preposterously low, treasury bonds are still winning.

For example, the iShares 7-10 Year Treasury Bond Fund (IEF) sank deep below a 50-day moving average in October. Here in November, though, IEF is already back above an intermediate-term trendline.

ief 50

Fixed Income ETFs Bounce Back – Bespoke
Bullish On Brazil: Comparing 2 Small-Cap ETFs – Richard Bloch, Seeking Alpha
Bottoms Up For 4 Promising Equities – Tom Aspray, Forbes
XLF: Banking On A Turn Around? – Skip Raschke, The Street
Four International Mid-Cap ETFs Your Broker Forgot To Mention – ETF Professor, Benzinga


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