Long tern bond futures signaling deflation and 30% drop in yield over next eighteen months
Alan Hershey
Apr. 12, 2007

The ten-year notes and thirty-year bonds gave a super bullish signal today. The long term monthly chart analytics and quantitative models now suggest a thirty percent fall in bond yields from 4.74% (ten year note) to 3.35% in the next eighteen months.

Most likely the Fed will cut rates very aggressively as the economy slows down and stagflation changes to deflation.

According to the sixty-year cycle model. The yield on the ten-year notes can go to 1% or lower mirroring what happened in Japan in the next twenty years. It may not happen like in Japan because of high trade deficit. However it is a sure possibility.

Long tern bond futures signaling deflation and 30% drop in yield over next eighteen months
Alan Hershey
The ten-year notes and thirty-year bonds gave a super bullish signal today.
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