The iShares 20+ Year Treasury Bond ETF, known as TLT, might break through the $90 mark. If yields drop, it could rise to $100 or even higher. However, patience is key to seeing significant gains with TLT since it closely follows bond yields. Bonds are loans from governments that borrow money by issuing these bonds. The yield shows the interest earned compared to the bond’s price. When bond prices go up, yields go down, and vice versa.

Technical Analysis And Market Trends

Long-term government bonds can impact borrowing costs for mortgages, loans, and corporate debt. They also compete with stocks; if bond yields look good, investors may prefer them. Recently, TLT has fallen as yields increased, but technical analysis suggests a potential upswing. Those interested can find a detailed chart and video analysis on TLT’s breakout prospects. New investors can buy TLT through brokerage apps, banks, or robo-advisors. Many retirement accounts also include Treasury investments. However, there are risks, such as yields rising further, which could cause bond prices to drop. It’s important to apply risk management strategies, such as position sizing, setting stop-loss orders, and having a long-term outlook. With yields at their highest level in years, bonds have attracted global attention. Anyone thinking about investing should understand both the potential benefits and risks.

Recent Economic Indicators And Strategy

The iShares 20+ Year Treasury Bond ETF, TLT, is moving above $90. If this breakout continues, it could signal the end of the long period of rising interest rates we’ve seen. This is a good sign for traders, indicating bond prices could rally over time. We view this move as credible based on the latest economic data. The August 2025 inflation report showed the Consumer Price Index (CPI) cooling to 2.1% year-over-year, which is within the Federal Reserve’s target. This is strong evidence that inflationary pressures from 2022 are under control. Additionally, the latest non-farm payroll report showed job growth at a healthy 155,000, easing wage pressures without signaling a recession. This “soft landing” bodes well for potential future rate cuts by the Fed, especially compared to the uncertainty of 2024. For a direct bullish strategy, we recommend buying TLT call options with three to six months until they expire. For example, the December 2025 $95 strike calls could offer a way to profit if bond prices rise as yields fall. This strategy limits our maximum loss to the option premium paid. A more conservative option is to sell bullish put spreads, which profit if TLT stays above a certain price. Selling the October 2025 $88 put while buying the $85 put for protection provides an upfront premium. This strategy works if you believe the recent low around $88 will act as a solid support level. We must remember the significant rise in yields between 2022 and 2024, which hurt bondholders. Any unexpected increase in inflation could quickly change this trend, so it’s crucial to manage risk effectively. Using options instead of holding the ETF directly helps us control exposure to losses. Create your live VT Markets account and start trading now.

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