Markets/Irrational/Longer/Solvent

The last, and perhaps the biggest, bubble of them all: the yield on the long bond since 1980, annotated by, and stolen without permission from, Alchemy of Trading.

Disclosure: NakedShorts, who is most-times early, which is indistinguishable from being wrong, has a starter position in TBT. Banking on, among other things in the fullness of time, a little supply, somewhat less demand, and eventually, as all those trillions in US Treasury and Federal Reserve Board-sponsored giftte cardes start actually moving about the system (not that that shows any sign of happening any time soon), a consequential unintended Ooopth (or 20). 

As the not-for-profit prophets on the financial entertainment circuit keep insisting in an entirely different context, values are compelling at these levels. Not that they can’t get a lot more compelling before the reality enema kicks in.