Chronic Deflation Will Send 30-Year Treasuries to 3% (Gary Shilling)

Gary Shilling still sees a 3% yield on the 30-Year US Treasury Bond and a lower stock market due to "chronic" deflation. His views haven't changed since July 21, when he was interviewed on Bloomberg. Since then the 30-Y Treasury yield ($TYX) lost 93 basis points and price ($USB) gained 1.5% to 132. The yield is sitting on floor support and could breakdown tomorrow. You can also see a clear descending channel, so if support gets violated 3.6% looks like support. Bonds are in bubble mode and could spike to form a capitulative top (yields move inversely with price). In my opinion, either Gold or 30-Year US Treasuries move parabolically from here to new highs. Which will it be.. I put up a chart of the 30-Year Treasury yield and embedded the Shilling interview courtesy of Tech Ticker. The deflation topic is hot right now. I'm writing about about the high yield bond-S&P yield spread on my next post with charts and videos. HY overvalued here?




$UST30Y (30-Year US Treasury Bond Yield)

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