From a technical perspective, the iShares Barclays 20+ Year Treasury Bond Fund (TLT) may fall all the way to its 200-day moving average before finding support, says Michael Harris at the Price Action Lab blog.
“A test of 200-day simple moving average support is quite possible and by that time most late longs will be out and the bond market will have pocketed their losses,” he wrote.
TLT was down 0.9% in premarket trading Wednesday.
iShares Barclays 20+ Year Treasury Bond Fund
Full disclosure: Tom Lydon’s clients own TLT.