The iShares Barclays 20+Year Treasury Bond (NYSEArca: TLT) has gained about 10% on the latest rally. News of Greece leaving the Eurozone and weak domestic economic data have investors seeking safety. [ETF Spotlight: Inflation Protection]
“This week, technical indicators such as the relative strength index reached overbought levels. What this means is that the rush into the market, sparked by the recent escalation of problems in Greece, pushed prices too far, too fast,” Michael Kahn for Barron’s wrote.
Although Treasuries have given investors a place to hang out amid Europe’s troubles, when considering trading price or risk, they are not looking attractive, reports Kahn. The problem is that the Treasury market has already reached the price ceiling that stopped it on many occasions over the past year, which has corresponded with historic low yields.
iShares Barclays 20+Year Treasury Bond
Tisha Guerrero contributed to this article.