As long-dated Treasury yields continue to plummet, their prices have gotten extremely overbought.  The ETF that tracks 20+Year Treasuries — TLT — is currently trading above $140/share, which is a new all-time high.  At its current price, TLT is just under 3 standard deviations above its 50-day moving average.  As shown below, that’s the most overbought it has been in at least a year:

20TLT

In today’s Chart of the Day sent to paid subscribers, we highlight the near-term forward returns for TLT when it has gotten this overbought in the past.  To view the report, please start a 14-day free trial below.

 

Print Friendly, PDF & Email