US Treasury bonds are worse than Junk

Junk bond ETF outperforms both Treasury and ‘investment grade’ (IG) bonds

As would be expected, nominal junk (HYG) is pretty bearish along with the rest of cyclical/risk ‘on’ markets. It’s in a 2022 daily chart downtrend. With the tiring inflation story still eating away at Treasury bonds, it’s logical I suppose that Junk is strong in relation to T bonds.

But what of Junk vs. IG? At the very least this is a chart asking market bears (I am short SPY) not to have any level of hubris right now. It is asking them to be thankful for gains from the short side but with a caveat of a bullish signal running beneath the surface as we enter the most hyped week (hey, I’ve been hyping it if no one else) of the year, IMO.

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