Both 30-year and 10-year US treasury bond and note futures compressed within the last 48 hours. The 10-year is breaking up as I write but the 30-year is not (yet). The Bond market is obviously over-valued by historic standards but this pair of signals may mark the beginning of the next ‘leg’ up. If prices are still above Mondays highs at the close, buy some (those highs were 132,23 for the September 10 year, 173,02 for the September 30 Year. The 10-year may be the better bet as it seems to be outperforming the 30-year so far in this long rally:
One of the Chinese equity indices that we follow compressed on the same day and has (just about) closed above the compression. This is probably a ‘buy’ signal but we would prefer to see a bit more strength, so as to be sure of the break, and then chase it upward. We can’t trade this but you may have market access that we lack:
