Convertible bonds have reached an all-time high group score.

The US Treasury 10YR Yield Index TNX gave a second consecutive sell signal at 0.60% in last week’s trading. The index has completed a series of lower tops and lower bottoms since rallying to 0.95% in June.

Convertible bonds have reached the top of the Asset Class Group Scores (ACGS) fixed income rankings with an average group score of 4.86, the highest level it has ever reached; the group now ranks sixth out of all 135 groups in the ACGS system. There are now 20 fixed income groups with average scores above the 4.0 threshold.

After reaching an all-time high of $76 in Monday’s (7/13) trading, the iShares Convertible Bond ETF ICVT reversed down on Tuesday and currently sits at $73 on its default chat. ICVT currently has a near-perfect 5.88 fund score and a positive 4.33 fund score direction. Since bottoming in at $47 in March, the fund has given four consecutive buy signals. Year-to-date (through 7/14) ICVT has gained 17.83% outperforming the S&P 500 SPX which has returned -1.03% and the iShares US Core Bond ETF AGG which has notched a price return of 5.61%. The fund currently yields 1.56%. Even with this pullback, ICVT remains in overbought territory with a weekly overbought/oversold reading of 80%, so those considering adding exposure may be best served to do so on a pullback or after prices have normalized at current levels. ICVT has most recently found support at $66.