With long-term interest rates all over the news, it’s worth revisiting what EWAVES was saying before the latest surge began.
The following two EWAVES charts were published on December 17, 2024. One shows the U.S. 30-Year Treasury yield, and the other shows EDV, a zero-coupon Treasury ETF. Both indicated that a fifth wave up in interest rates, and a commensurate decline in bond prices, had just begun.
Watch the video below from 32:27 to see Elliott Prechter discuss EWAVES’ interest-rate outlook back in December 2024. Elliott notes that the setup echoed October 2008, when many contrarians mistook a wave three low in stocks for the final bottom. Similarly, the October 2023 low in bonds was not the end of the bear market. EWAVES correctly anticipated both the last significant rally, wave C of zigzag wave 4, and the subsequent start of wave 5 toward lower bond prices and higher yields.
What about rates now?
Will long-term rates keep rising, or could a massive bond rally unfold soon? EWAVES Live subscribers can see our current outlook. The US package includes U.S. bonds and interest rates.