Jon Hagen

Finally Time to Short U.S. Treasuries?

Potential Downside: What about the Fed's comments at the end of last year about them considering buying long term treasures (that TBT 2x shorts) as part of their quantitative easing activities (to keep the rates low so they don't borrow money at rates higher than they "have to")? If they decide to start doing that to keep the long term rates low you are not going to get the price declines you need to clean up with TBT. Even worse, depending on the size and longevity of the Fed's meddling, these already mentioned [by Ben] Fed actions could result in sending long term (20+) treasury prices higher and kill your investment in TBT. I am with wulfmiester.