Bond sentiment reset removes a barrier to higher bond yields
A reset has occurred in the bond markets with sentiment going from extreme pessimism - expecting higher yields, back to the opposite side with the bond sentiment indicator now showing increasing expectations of lower yields. The chart below appeared in the latest edition of the Weekly Macro Themes report alongside some longer-term indicators on the US bond market.
The bond sentiment indicator incorporates bond mutual fund flows, speculative futures positioning, bond market implied volatility, and global sovereign bond market breadth. When the indicator moves to extremes it often marks turning points in bond yields. Now that the indicator has moved back to the low side, the risk of another jump in bond yields is higher.
Never miss an update
Enjoy this wire? Hit the ‘like’ button to let us know.
Stay up to date with my current content by
following me below and you’ll be notified every time I post a wire
Callum is Head of Research at Topdown Charts.
Topdown Charts is a chart-driven macro research house covering global Asset Allocation and Economics.
5 topics
Comments
Comments
Sign In or Join Free to comment
most popular
Equities
The 4 common traits of small-cap takeovers (and our top 8 targets for 2025)
Seneca Financial Solutions
Equities
Finding winners in this growing megatrend
Livewire Markets