Tuesday, September 21, 2010

Other Bond Markets Are Also Rallying

The above charts of the municipal bond market, mortgage, junk and investment grade corporate bond markets all indicate money is flowing into the dent markets; it's not just the Treasury market that is benefiting from the recent move into fixed income.

The question now becomes are these markets in the middle of a bubble? The MUBs are right at crucial support and the MBBs are just below support, indicating some technical weakness. the LQDs have sold off a bit, but still have some technical support.