NEW YORK (TheStreet) -- U.S. Treasury yields are on the rise, with the yield on the 30-year bond rising above its 200-week simple moving average. Investors who want to trade bonds like they were stocks should use the 20+ Year Treasury Bond ETF (TLT), which represents a basket of Treasuries with maturities of 20 years to 30 years.
The basic concept to remember is that when bond yields rise, the prices of bonds -- and thus this of exchange-traded fund -- will decline. Here are daily and weekly charts for the U.S. 30-year bond yield and for the bond ETF which clearly illustrate that you can trade bonds just like a stock.
Here's the daily chart for the 30-year bond yield.
This is a daily chart for the yield on the U.S. Treasury 30-year bond yield for the last 12 months. This yield set an all-time intraday low of 2.221% on Jan. 30, then began an uptrend through the low of 2.445% on April 6. The upside trend line began from a high of 2.870% on March 6 through the high of 3.128% on May 12. Technicians call the price action between these nearly parallel trends as a trading channel.
Within the channel are the 50-day and 200-day simple moving averages of 2.953% and 2.834%, respectively. This golden cross for yields is a negative for bond prices because as yields rise, the price of the bond declines. Note that Friday's high yield of 3.256% is approaching the upper trend of the channel at 3.307% on Monday.