Bond prices may fall in the near future.
It is probable that bond prices will decrease.
The bond market is in retreat as interest rates rise, and this is having a ripple effect on other markets. The bond market is typically more stable than other markets, so this is a cause for concern. The next retracement level for the bond market is at 105, and it is unclear if this will be enough to stop the market's decline.
The current outlook on the bond market is confirmed by sentiment. A ratio of put-call open interest is useful in this matter. This number must be interpreted in reverse to that of a put/call ratio. A high reading reflects traders writing puts in the expectation of higher bonds so that may retain the premium income. This number has risen over the last weeks reflecting an increase in optimism. Price has declined despite their positions. This tells us that price must go lower to turn these traders bearish and in line with the falling quotes. Remember, in a bear market, the bears are correct, and the bulls are the contrarians.
The US 30-year bond is a key part of the US debt market, and its performance has a big impact on the overall economy.
