As of the August 16, market close -- 98% of traders say they're "bond bulls", according to the Daily Sentiment Index (trade-futures.com).
"The only higher percentage of bulls was the all-time record extreme of 99% bond bulls, which occurred on December 16, 2008, two trading days prior to the all-time high at 123.15."
EWI Short Term Update, 8/16
Bond buyers made their feelings known at the open on Monday (8/16) -- as the iShares Lehman 20+Year Treasury Bond Fund gapped higher. See the chart below.
When sentiment becomes so one-sided, it's often a sign that a trend-change lies just ahead.
The yield on the U.S. 30-Year Treasury Bond sank to 3.71%, the lowest level in 16 months.
But rates may not stay low for long. According to the August, EWI Financial Forecast:
"... the United States’ unsustainable debt load will eventually cause investors to question the solvency of U.S. government credit and result in an accelerated rise in interest rates for T-notes and bonds...Timing is everything in this tricky environment..."
And the time for a rise in U.S. government bond rates may be upon us.