The U.S. treasury bond market is one of the largest and most important in the world. And with interest rates becoming a daily topic of conversation with investors, it’s a must-watch now.
And even more interesting is that treasury bonds fell (and interest rates rose) following the Federal Reserve's 50-basis point cut.
Today, we take a look at the bond market via another indicator: its correlation to the Japanese Yen.
Below is a chart highlighting the correlation between the 20+ Year Treasury Bond ETF (NASDAQ:TLT) and the Yen.
Both have performed poorly, creating bearish price reversals and breaking near-term support. BUT it is important to note that the correlation between the YEN and TLT remains high.
Perhaps it’s worth putting the Yen on your radar for signs of continuation or a potential change in the bond market. Stay tuned.