02 August 2010

US Treasuries On the Long End Are Looking Toppy


Treasuries are not something I like to go long or short unless they are part of a paired trade. The long end of the curve is starting to look like a viable trade, unless one anticipates a short term stock market event and a flight to safety.

Friday is the Jobs Report.

People who have been holding Treasuries as a long term trade have done well. That trade on the long end of the curve is now starting to look like dead money, but these things take time to develop, and the bull trend in Treasuries has been powerful.