U.S. Treasury Yields Fall But Direction for Long-End Yields Still Seen Upward
Macro
U.S. 10-year Treasury yields fell in the short term, but analysts at ING maintain a view that the long end of the curve will ultimately trade at higher yields. This sets up a potential fade of the recent bond rally, betting on a resumption of the upward trend in long-term rates.
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Angle
↓ SHORT-6% target+3% stop1-3 months
Short the 20+ Year Treasury Bond ETF (TLT) on the view that the recent dip in yields is temporary and the structural trend remains higher.