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Ooops! Seems I was wrong about Bernanke buying 30-yrs. Everything is going to be in the 5-10 yr. range. But no matter. Either the Fed wins the battle against deflation, or they don't. And if they don't, then those long bond yields will most likely approach GDP growth trend plus 1.5%. Which is a target of 3-3.5%.

I will be watching the employment number tomorrow as well as consumer spending going forward for signs of economic improvement. This would be a sign to sell the bonds.

Disclosure: long 30-yr. Treasury bonds