On September 13, I asked, “Will the bearish trend in bonds continue?” In that Barchart article, I wrote:
I expect the bearish trend in bonds to stabilize. While a lower low is possible, I believe it would be marginal, and bonds will find a comfortable range around the current level. Meanwhile, issues that may derail stability in the bond market are a geopolitical event or significant U.S. credit downgrade that causes other governments to liquidate their U.S. government debt securities holdings. A flight-to-quality could cause a rally. However, I favor stability over the coming months as the trajectory of rate increases slows.
