Bonds Have Gone Bonkers! What’s It Mean?

by Options Sensei |

The stock market’s decline over the past few weeks has grabbed most of the mainstream headlines. But, the bigger and more worrisome move is what has occurred in the bond market.

On Monday, yield on the U.S. 10-Year Note dropped to 50bs of 0.5% down from 1.30% just three weeks ago.  This is a sign of true panic and that the U.S. and global economy are headed for a recession.

(Want free training resources? Check our our training section for videos and tips!)

The “iShares 7-10 Year Treasury (IEF)” is a popular exchange-traded fund (ETF).  The chart looks more like something from the or bitcoin bubbles than the $100 trillion bond market.  It is simply not supposed to go parabolic. Note, as price goes up yield goes down.

ief ishares chart 2020

The uncertainty of the full impact of… Continue reading at

The post Bonds Have Gone Bonkers! What’s It Mean? appeared first on Option Sensei.