It's been a nice rally, Treasurys, but it's time to bet against the government, Anthony...


It's been a nice rally, Treasurys, but it's time to bet against the government, Anthony Mirhaydari says. It's not just the usual suspects (ending QE, inflation pressure, the debt ceiling), but currency effects from a building euro - itself backed by ECB rate hikes - that will weigh on U.S. government bonds.

Comments (4)
  • buyitcheap
    , contributor
    Comments (1902) | Send Message
     
    It's not over yet friend. Euro's heading to 1.34, Treasuries will stay low and the only resource you need for bonds is hoisingtonmgt.com - these guys have called every major move in the bonds absolutely right.
    11 Jun 2011, 10:15 AM Reply Like
  • Duude
    , contributor
    Comments (3413) | Send Message
     
    With as much as the Fed has done to decimate the dollar, Europe seems like they're on a mission to bury the Euro at sea. To be sure, there is a lot more action still to be played to know where both are going to go. The Fed may or may not introduce QE3. The European union may or may not bail out more PIIGS. The also may or may not raise interest rates this summer. All of these things will play on currencies.
    11 Jun 2011, 10:36 AM Reply Like
  • Rob Viglione
    , contributor
    Comments (331) | Send Message
     
    One thing to consider is that keeping Treasury rates low is now a matter of national security. The U.S. government would quickly go insolvent if rates jumped past some nominal threshold. I'm guessing the powers-that-be would do everything to keep that from happening.

     

    Tough to bet against the umpire who makes the rules...
    11 Jun 2011, 01:44 PM Reply Like
  • The Patriot
    , contributor
    Comments (358) | Send Message
     
    I agree. Do they have the control to do that ?? When QE 2 ends there will be one less major buyer. They were buying to keep rates low using some kind of formula to step in when rates climed too high.
    What will stop the rates from climbing ?? It will be in everyone elses interest for them to rise ??
    11 Jun 2011, 03:42 PM Reply Like
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