Treasurys extend a big 2-day rally following the FOMC minutes, the 10-year yield off 8 basis...

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Whitehawk Comments (2756)
 
Yep, Bill Gross shouldn't short Treasurys again unless he trades the swings.
22 Aug 2012, 04:30 PM Reply Like

Brendan O'Boyle Comments (936)
 
I don't really understand the logic here. The 10-yr yield went up substantially during QE2, why the 2 day rally?

Strangest bull market I have ever seen. It's a scramble to buy a piece of paper that lost 3 full years of coupon payments just from the yield dropping from 1.38% to 1.90%. I just don't understand.
22 Aug 2012, 06:20 PM Reply Like

Chris Bersaw Comments (512)
 
Because traders are front running the fed ahead of their assumed renewed bond buying, its a classic buy the rumor and sell the fact trade.
22 Aug 2012, 07:17 PM Reply Like

Andresrue Comments (167)
 
At these price levels, long-dated T-bonds are the idiot's version of greed - great risk for no reward.
22 Aug 2012, 11:04 PM Reply Like

popmcdan Comments (12)
 
Ever considered what would happen if the Fed were the ONLY buyer of US Treasuries.....????
22 Aug 2012, 07:14 PM Reply Like

dieuwer Comments (1774)
 
They already own 70% of the entire float.
23 Aug 2012, 08:22 AM Reply Like

Andresrue Comments (167)
 
The T-bond market has lost all contact with rational thinking. The guys who buy these bonds apparently cannot do basic math. Yields on the 10-yr dropped today to 1.69%. Is anybody who buys this paper actually thinking of holding it for the 10 yr term of the bond, collecting those "juicy" coupons, or is the notion simply to dump it on somebody else (maybe the Fed or the Chinese (?)) down the road? At these low yield levels, a small hike in interest rates (we're talking mere basis points!) crushes the cash flow value of these insanely overpriced bonds.
22 Aug 2012, 08:05 PM Reply Like

pollyserial Comments (887)
 
Not saying I'm a buyer of bonds here but aren't there numerous ways to read today's QE tea leaves and isn't this just testament to that?
23 Aug 2012, 01:07 AM Reply Like

PalmDesertRat Comments (1738)
 
took some tlt profits this morning at 125.43
24 Aug 2012, 09:35 AM Reply Like