oldgoldbug

Bond Expert Friday Wrap: Duration Rout

Interestingly TLT has lost a mere 58% to GLD this year in market value though the income to date of about 3% will narrow the loss to a more palatable 55%. It sure looks like bonds would be a decent buy on any decline, but the action the past 6 days is alarming, as TLT has lost 3.9% of its nominal value, closing at 95.81. A drop below the lows of 88-89 would likely signal the long awaited "other shoe" has dropped. If coupled with continued gold advances, it will blast apart the facade that the economic situation is under control.