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Charts are pointing to a relief rally for bonds, says trader

By Annie Pei, CNBC [1]

The bond market is about to breathe a sigh of relief, TradingAnalysis.com founder Todd Gordon told CNBC's "Trading Nation" on Thursday.

Looking at a chart of the ETF that tracks longer-term Treasurys, Gordon said the bond market is oversold as yields remain overbought. He expects a relief rally around the corner. Here's why:


The trade: Gordon is suggesting buying the June monthly 118/122 put spread for 90 cents, or $90 per options spread.

Bottom line: Gordon believes that bond prices will rise, and TLT will return to $122.

From CNBC [1]