Key Points
- Investors are dumping long-term government bonds, with the yield on 30-year Treasuries rising to 5.13%.
- Sovereign bonds across the UK, the EU, and Japan are all affected by the sell-off.
- The S&P 500 and the Dow retreated on Friday by 1.2% and 1.1%, respectively.
- Gold and silver fell steeply.
- Copper, Lithium, critical materials, and uranium are also experiencing a sell-off.
- President Trump hinted at another major strike on Iran, with his Sunday “The Clock is Ticking” post on Truth Social.
- Brent futures jumped to above $111 per barrel early Monday.
Investors are dumping long-term government bonds. The 30-year Treasury yield broke resistance at 5.0%, rising to 5.13% on Friday before easing slightly to 5.12% early Monday.
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Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters.
Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis.
Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.
He founded PVT Capital (AFSL No. 546090) in May 2023, which offers investment strategy and advice to wholesale clients.