US 30 yr T-Bonds

US 30 yr T-bonds: Maybe not the hottest topic on Wall Street right now, but for sure a nice looking chart with more upside potential. Below is a long term chart (since its inception in 1977) and as with most bonds and commodities (see TLT/TLH, TNX/TYX: here) these also move in 3s: ABC pattern. For the T-bonds (also known as $ZB on several futures trading platforms), we see a larger ABC pattern underway, with A and B completed late 1990s and early 2000s. Primary-C is now underway. One can also clearly see that Primary A’s advance was overlapping and counts best as a set of abc’s as well.

US 30yr T bonds

Where does that leave price currently? My best interpretation is that Primary C is still unfolding and should ideally target $200 to $220 in the years to come as those are the 1.382 and 1.618x extensions of A, measured from B: typical C-wave targets. Zooming in, further extensions of (red) major-a, from b, also target this zone. Ideally (green) intermediate-b is complete, but it can drop further to $140, right at the lower green uptrend line. Please note that price is clearly in a long term uptrend and should be traded for long term investors accordingly.