The bond market has been in retreat since the end of August.  Not coincidentally that is also when the stock market began its ‘risk on’ rally.  Now it seems to be having an effect on individual investors as well.  Outflows from mutual funds and exchange traded funds have occurred for the first time in quite some time.  Today’s rise in rates might be related to the tax deal recently cut between the Obama administration and Republicans.  Then again, it might be just the extension of a well-established trend.  Yields still have a way to go to get back to levels seen earlier this spring.  Also municipal bonds are selling off as it now seems that the Build America Bond program will not be extended.  In today’s screencast we examine the current state of the bond market.

Items mentioned in the above screencast:

Comparing TLT and SPY.  (StockCharts)

The bond market sell-off is accelerating.  (Money Game)

Money is now flowing out of bond ETFs.  (Ticker Sense also Horan Capital Advisors)

We are still unwinding the summer bond rally.  (Christopher Huff)

No Build America Bonds extension.  (Bloomberg, WSJ)

Daily chart of the iShares Barclays 20+ Year Treasury Bond (TLT). (Finviz)

Daily chart of the iShares S&P National AMT-Free Muni Bond ETF (MUB).  (Finviz)