• Currently the yield of 30-year US Treasury Bonds is at its lowest level ever.
• The bond-market rally which began at the beginning of 2014 is near its end.
• Some upside for long Treasury bonds is still possible, but not much.

Nearly 2 years ago, at the end of August 2011, the BVR model signaled the beginning of a down market for bonds. Since then long bond funds have returned a total of about 6% and short bond funds about 2%, while SPY, the exchange traded fund tracking the S&P 500, gained almost 40%. The BVR model’s message remains loud and clear: Avoid long bonds.