Jump to content
Sign in to follow this  

Bonds and Gilts

Recommended Posts

Posted (edited)

@JamesIG,

Some traders on IG Community expect there to be a drop in major equities. They also think precious metal prices may go up. If this plays out then an important asset which often traders never seem to talk about or discuss is Bonds and Gilts. You may wish to set up a new section on the IG Community called Bonds?

If things do play out (there is no guarantee that they will) but if they and major stock markets decline and precious metals do increase in value then I think Bonds should see a price increase in such conditions as institutions and 'High Net Worth Individuals' (HNW) shift part of their capital into this asset class to protect their portfolios. Bonds are a 'defensive' assets that tend to rise in value in such conditions. The smart money tends to enter Bonds before the mainstream media talk about them. The smart traders will notice the trends before traders begin trading them. 

Have a look at the price action on some of the following:

  • US Treasury Bond
  • US 10-Year T-Note
  • German Bund
  • US Ultra Treasury Bond
  • US 5-Year T-Note
  • US 2-Year T-Note
  • Japanese Government Bond

I for one am keeping a close eye on the price action for these (above). I shall let the price action confirm my assumptions. Also Bonds as an asset class tend to be a lot less volatile than other asset classes so they should not be crazy daily swings like we are seeing on major indices right now. 

The one thing most of the above have in common is that they are all trading above the 20, 50 and 100 day moving averages on a '4 hour' timeframe. 

Edited by TrendFollower

Share this post


Link to post

Whilst the underlying trade may happen, I doubt there would be sufficient number of people who trade it for it to warrant it's own section. Volumes for this asset group are VERY low. 

It may be worth putting posts like this in the Macro Events section. If there are sufficient unique threads then we can consider it. 

https://community.ig.com/forums/forum/29-indices-and-macro-events/ 

Share this post


Link to post

Your content will need to be approved by a moderator

Guest
You are commenting as a guest. If you have an account, please sign in.
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  

  • Member Statistics

    • Total Topics
      6,079
    • Total Posts
      26,693
    • Total Members
      33,889
    Newest Member
    galina2809
    Joined 23/01/19 05:15
  • Our picks

    • The pull-back is here - APAC brief 23 Jan
      The pull-back is here: The pull-back markets were waiting for – the one we inevitably had to have – has arrived. It’s risk-off across financial markets and the optimism that drove global stocks off their December lows has subsided. Relatively speaking, it’s been a day of significant downside, but nothing yet to warrant tremendous fear. It should be common knowledge, but it bears repeating: proper validation that global equities have truly established a recovery ought to be judged not by the latest high, but by where markets form their next low. The retracement which is apparently upon market participants now hands a golden opportunity to judge this market for what it truly is – have the bulls reclaimed their dominance, or have the bears lulled them into a trap, and now stand poised to assert further downside?


      The market’s rationale: A greater look at this subject and Wall Street’s price action later. In relation to the overnight sell-off, the rationale was as feeble as the one that got stocks to their recent peaks in the first place. It’s been chalked up to reduced positivity towards the trade-war, and renewed concerns about global growth. To begin with, very little data throughout the past week has provided a clear and substantial picture on economic growth. The boost in sentiment has come from geopolitical or monetary policy developments that was assumed to be supportive of the growth outlook – at some point in the future.  Some nice-noises made between the US and China in trade negotiations here, and a few dovish comments from a handful of US Fed speaker there, is what ignited the latest part of the risk-on rally.
      • 0 replies
×