In Futures Magazine article, 30-year Treasury taking off Hot Commodities, Keith Springer President of Springer Financial Advisors in Sacramento, says the slew of recent bad news has helped bolster bonds.
“We’re seeing strength and a flight to quality. The end of QE2 means less borrowing. The U.S. is in no risk of default and nobody in the universe believes there’s even a remote chance it will default. So it is still the reserve currency, still the quality in times of turmoil,” he says.
Springer also expects bond prices to continue to rise and sees support at 124 and resistance at 126 to 128.