Long-dated U.S. Treasuries are rallying, breaking above a key downtrend that began in late 2023, fueled by recent soft economic data, which has led investors to reprice higher expectations on the Federal Reserve cutting interest rates in September.
The iShares 20+ Year Treasury Bond ETF TLT, a popular gauge for long-term bond performance, has climbed to $92 on Tuesday, eyeing its fourth consecutive day of gains.
This recent spike has lifted TLT above its declining trend channel for 2024 and, crucially, above its 50-day moving average. These technical indicators suggest a potential trend reversal is underway.
Other ETFs that track long-term zero-coupon Treasuries, such as the Pimco 25 Year Zero Coupon U.S. Treasury Index ETF ZROZ, have seen even higher increases in recent sessions, surging as much as 6% over the last four days.
Chart: TLT ETF Rallies Above 50-Day Average, Snaps Bearish 2024 Trend
