Levels For TLT Approaching

by Geoff Garbacz | 03/07/2017 10:17 AM

Treasury bonds are at a key juncture here. The potential for bonds to make a move from 2.50% to 3.00% is in the cards for next week if the Federal Reserve Open Market Committee (FOMC) makes a move.

Odds now favor such action by the FOMC. We use the iShares Barclays 20 Year Treasury Bond Fund ETF (TLT) as our proxy for Treasury Bonds. Key levels to hold are $117.50 then $115 followed by $112.50 and finally $110.

Such a move lower in price will negatively impact Utilties, REITS and high dividend stocks. It should benefit financials.