Ten-Year Bond Surges 3.2%: Where Are the Green Shoots? [View article]
Hm, I think PST rather than TBT is more appropriate for playing 10-year yield.
I believe Ben hasn't brought the bazookas out because the stock market is going up so naturally people are unloading their USTs. If the yields start going up while the market is plunging, then the fed will certainly start 'easing'.
On May 04 12:42 PM RiskReturnOptimizer wrote:
> Trading ranges should be respected. 10 Year Treasury yield previously > ranged from 2.6% to 3.0% following March FOMC. The new range is > 3.0% to 3.2% following April FOMC. No need to fight the fed, simply > respect the trading range, buy low / sell high until the next range > is set. Long term -- we all agree yield needs to be higher -- but > long term can be years away if Fed keeps driving yields lower artificially. > So, best trade is long TBT when yield touches 3.0%, and exit TBT > when yield hits 3.2%. No need to be too creative -- simply follow > the rythm of the market.
Ten-Year Bond Surges 3.2%: Where Are the Green Shoots? [View article]
I believe Ben hasn't brought the bazookas out because the stock market is going up so naturally people are unloading their USTs. If the yields start going up while the market is plunging, then the fed will certainly start 'easing'.
On May 04 12:42 PM RiskReturnOptimizer wrote:
> Trading ranges should be respected. 10 Year Treasury yield previously
> ranged from 2.6% to 3.0% following March FOMC. The new range is
> 3.0% to 3.2% following April FOMC. No need to fight the fed, simply
> respect the trading range, buy low / sell high until the next range
> is set. Long term -- we all agree yield needs to be higher -- but
> long term can be years away if Fed keeps driving yields lower artificially.
> So, best trade is long TBT when yield touches 3.0%, and exit TBT
> when yield hits 3.2%. No need to be too creative -- simply follow
> the rythm of the market.