Bonds breaking out

The chart below is that of  US bond ETF.  The breakout here is quite obvious and significant.

20+ year Treasury Bond fund - Source Bloomberg

Looking at India’s 5yr interest rate swaps – a downward trend seems to have been established.

5year Interest rate swaps - Source Bloomberg

The message is quite straight forward:  investors are seeking the safety of bonds and hence another wave of selling in the equity markets is likely.