The December jobs report came in well below expectations this morning sending bond yields tumbling. The 10-year treasury yield has now broken down out of the uptrend that has been in place since early May:
This has sent the long-term treasury ETF back above its 50-day moving average. It’s now possibly forming a double bottom:
And the 30-year treasury bond is bouncing off its long-term uptrend line:
This fits well with the counterintuitive pattern of bonds languishing during the Fed’s bond buying programs and surging (possibly due to short covering) after they’re completed (although tapering doesn’t quite constitute completion).
Time will tell if long bonds will blow up their haters.