BND Forecast




Price Forecast:


Bearish<->Bullish




Bullish Case: A potential shift towards lower interest rates, driven by recent economic recovery signals, could boost BND demand, leading to price appreciation in the near term.




Bearish Case: Persistently high inflation and additional rate hikes may pressure BND prices further, exacerbating its underperformance in the coming months.




Potential Outcomes:
  • Rate cuts lead to a 40% price rebound (25% probability).
  • Continuous inflation drives further declines (30%).
  • Flat economic indicators maintain current levels (45%).




Trading Oracle: Implement a bull call spread with $74 call buying and $76 call selling given favorable volatility patterns. Target January expiry to capitalize on potential BND uptrend with risk managed through defined upper limits and a favorable risk/reward outlook.



November 27, 2024


Vanguard Total Bond Market Forecast

BND        Vanguard Total Bond Market











Correlated Assets

Assets that tend to move strongly with BND



LTPZ Forecast + Options Trading Strategies   LTPZ  PIMCO 15+ Year U.S. TIPS Index Exchange-Traded (0.92)


TYD Forecast + Options Trading Strategies   TYD  Direxion Daily 7-10 Year Treasury Bull 3X Shares (0.85)


EPR Forecast + Options Trading Strategies   EPR  EPR Properties (0.8)


RDFN Forecast + Options Trading Strategies   RDFN  Redfin (0.79)


VNQ Forecast + Options Trading Strategies   VNQ  Vanguard Real Estate Index (0.77)



Uncorrelated Assets

Assets with little price relationship to BND



COUR Forecast + Options Trading Strategies   COUR  Coursera (0.0)


HOG Forecast + Options Trading Strategies   HOG  Harley-Davidson (-0.0)


SRRK Forecast + Options Trading Strategies   SRRK  Scholar Rock (0.01)


ARE Forecast + Options Trading Strategies   ARE  Alexandria Real Estate (0.01)


NET Forecast + Options Trading Strategies   NET  Cloudflare (-0.01)



Anticorrelated Assets

Assets that tend to move strongly against BND



OXY Forecast + Options Trading Strategies   OXY  Occidental Petroleum (-0.68)


XOP Forecast + Options Trading Strategies   XOP  SPDR Oil & Gas Exploration and Production (-0.7)


ABNB Forecast + Options Trading Strategies   ABNB  Airbnb (-0.71)


CTRA Forecast + Options Trading Strategies   CTRA  Coterra Energy (-0.72)


TBT Forecast + Options Trading Strategies   TBT  PowerShares UltraShort Lehman 20+ Yea (-0.92)









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