The 10-year Treasury just notched its best week since August, as a market flight to safety sent yields tumbling below 4%.

Investors rushing out of risk assets have piled into government bonds, pushing Treasury prices higher and handing the iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) a solid boost.

A Bullish Run With Caution Signs

Chart created using Benzinga Pro

TLT is riding the wave, up 6.53% year-to-date and 2.03% in the past month. Technically, it’s looking strong — trading above its five-, 20- and 50-day exponential moving averages, flashing bullish signals. Its eight-day, 20-day, 50-day and 200-day simple moving averages all confirm bullish momentum.

But, the RSI (relative strength index) at 67.88, nearly overbought, flags a potential sell-off risk ahead.

Read Also: Treasury Bonds Have Lost 50% In 5 Years, Yet Reversal Signals Emerge In Q1: Could Tariffs Actually Push TLT Higher?

Why Treasuries Are Hot Again

Fraser Lundie of Aviva Investors sees this as a welcome reset, saying, “The return of a negative correlation between bonds and risk assets is a sign traditional relationships are reasserting themselves.” That's a major shift from 2022, when both bonds and stocks crashed in tandem.

TLT: A Trend To Watch

With Treasuries rallying and TLT gaining ground, the momentum is clear. But with selling pressure building and economic uncertainty swirling, investors should keep a close eye on technical levels.

If bond yields reverse, TLT could find itself in a turbulence zone just as fast as it took off.

For now, though, bond bulls are enjoying the ride.

Read Next:

• Peter Schiff Sounds The Alarm: ‘Same Mistake Again’ Could Trigger Economic Firestorm

Photo: William Potter via Shutterstock