Here we are looking at TLT, it tracks a market-weighted index of debt issued by the US Treasury with remaining maturities of 20 years or more. Exclusively holding bonds with 20+ years to maturity, TLT is very sensitive to long-term interest-rate movements.
If you predict interest rates to rise in the future, it is best to avoid long-term bonds that could lock in a lower interest rate. However, if you believe interest rates will fall, then it makes sense to invest in an ETF like the TLT. And this is the reason for the sharp fall in TLT, analysts indicate a rise in these interest rates during this year.
On the technical level, we see how it is approaching the 200-session moving average and a strong support level between 134 and 136 dollars. We will have to wait for the next few weeks to see the macro news and the strength of the fall when it reaches this support.
If you predict interest rates to rise in the future, it is best to avoid long-term bonds that could lock in a lower interest rate. However, if you believe interest rates will fall, then it makes sense to invest in an ETF like the TLT. And this is the reason for the sharp fall in TLT, analysts indicate a rise in these interest rates during this year.
On the technical level, we see how it is approaching the 200-session moving average and a strong support level between 134 and 136 dollars. We will have to wait for the next few weeks to see the macro news and the strength of the fall when it reaches this support.