Sunday, November 09, 2008

30 year Treasuries TYX: Pension funds and Insurance are moving into equities?


These guys has helped us to call bottom on 10th of October. Difficult to consider the clear picture, but the divergence is apparent and killing Deflation argument already: yield is slowly moving up - treasuries trade has became too crowded. Only professionals are investing in 30 years to match their maturities on liabilities side, move here Up in Yield and Low in Price will create the last Bubble to burst - Treasuries. Last two days were very important: market was under selling pressure on Thursday, but treasuries were selling as well. Once only smell of inflation will come into Play music will stop here. Recent move up here is supporting our hope for USD breaking down from Triangle pattern with all positives we have discussed these two days.

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