The 20-year Treasury ETF has been in a consolidation phase since late last year.
The market is expecting a 25 basis point rate hike today.
Will investors’ expectations be met, or even exceeded?
We will know more at 7 p.m. German time.
Until then, investors, large and small, are trying,
prepare for this and properly assess their investments.
The ETF on the 20-year bond
After an extremely loss-making 2022, new opportunities are emerging, as in this ETF.
With over 30% price drop in the previous year, investors had to take a lot on board.
In the current situation, the chart formation ‘ascending triangle’ is close to completion, with upward pressure.
The resistance at $109 has been respected until now and since the end of 2022 we have been observing higher and higher lows.
It therefore remains to be seen how the share price will develop.
Should the resistance be broken through sustainably, investors can assume that the upward trend will continue.
Vice-versa, the continuation of the long-lasting downward trend cannot be ruled out if the upward trend line is broken.