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cbs7

How to trade bonds and treasuries

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I would like to start keeping a closer eye on bonds, especially treasuries.

 

Something which bothers me slightly is whether technical analysis can be applied in the same way to bonds as to stocks.

 

Strictly speaking the price of a bond is based on its yield and it's assumed that yields can't go below 0% (although they did briefly in the recent crisis). Because yields have this 0% floor, can TA which is normally applied to stocks work as well on bonds? In particular right now the very short-US bonds have yields very close to zero.

 

Hopefully someone will point this is just a stupid question, and that TA can be applied exactly the same, but I would like to check!

 

I would also prefer to trade using ETFS, so does anyone have experience which ETFs are the most liquid?

 

Thanks! :)

cbs7

 

 

 

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I would like to start keeping a closer eye on bonds, especially treasuries.

 

Something which bothers me slightly is whether technical analysis can be applied in the same way to bonds as to stocks.

 

Strictly speaking the price of a bond is based on its yield and it's assumed that yields can't go below 0% (although they did briefly in the recent crisis). Because yields have this 0% floor, can TA which is normally applied to stocks work as well on bonds? In particular right now the very short-US bonds have yields very close to zero.

 

Hopefully someone will point this is just a stupid question, and that TA can be applied exactly the same, but I would like to check!

 

I would also prefer to trade using ETFS, so does anyone have experience which ETFs are the most liquid?

 

Thanks! :)

cbs7

good luck finding an ETF in the UK that shorts us treasuries. You could always short long bond futures if you've got balls of steel!

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