Government Bonds Are Crashing, Here’s What Comes Next

Source: American Consequences
by Brett Eversole

“We’ve seen no shortage of market mayhem in 2022: Stocks recorded their worst sell-off since the COVID-19 crash. Commodity prices have soared… and inflation continues to run rampant. Still, in recent weeks, some of the wildest moves have happened in an unlikely corner of the market — bonds. Specifically, U.S. government bonds (considered to be some of the safest assets out there) are crashing. The iShares 20+ Year Treasury Bond Fund (TLT) holds a basket of long-term government bonds. Right now, it’s experiencing its second-worst decline on record. Regular Stansberry Research readers know we normally look at big moves for momentum signals, but this is one instance where prices probably can’t fall much further. And a double-digit rally is nearly certain, starting soon.” (04/27/22)