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. … Continue reading US Treasury bonds are worse than Junk

Who’s Leading You Astray?

From NFTRH 537’s Market Internals segment… “Who’s leading you astray, nominal Junk or its hidden bearish indicators?” Junk has since made a new high. Whee, party on Garth! Junk/Investment Grade is not buying it, however. Nor is Junk/LT Treasury. Notice how Junk bonds vs. higher quality bonds were in line with nominal Junk at the September highs. Now? Not so much. Garth is advised to … Continue reading Who’s Leading You Astray?

NFTRH; Junk-Quality Credit Spreads

Junk bond fund HYG is breaking below the 50 and 200 day moving averages. HYG in relation to long-term Treasury bonds never did break above the moving averages and you will recall by our ongoing weekly charts in NFTRH, has remained a bearish divergence to the US stock market. Junk bonds in relation to Investment Grade bonds is doing something similar on both the weekly … Continue reading NFTRH; Junk-Quality Credit Spreads