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Bond "Bubble" discussion 2012


Discussion in Treasury Notes and Bonds

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Bond "Bubble" discussion 2012

  #11 (permalink)
 
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30-yr Auction Thurs Feb 9 1:00 PM ET


https://www.treasurydirect.gov/tdhome.htm

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From ex-Fed Governor Warsh, " Central bank transparency is good, but transparency that delineates future policy breeds market complacency. It threatens to undermine the wisdom of the crowds and the essential interchange with financial markets."

Price discovery is the raison d'etre for the market. The Fed is supposed to be listening to the market to give it guidance in it's policy decisions, not dictating to the market, what the market should do. If investors feel there are no surprises left, as the Fed is concerned, they will once again lever up, and inflate asset prices, as they did with QE1&2, while the bonds sell off.

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 Gariel 
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I also think there will be a time to short bonds, I think we're coming up on it in the next couple of months. I'm actually thinking of selling a new 52 week high. I would like to swing short them with one of the double leverage etfs in my IRA. These double leverage etfs have time working against them making pretty good shorts (if you can get the shares). Does anyone know of a double or triple bond etf? I'm looking for the bond equivalent of what AGQ is for silver? Basically TLT but with leverage.

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There is a substantial risk of loss in trading commodity futures and options. Past performance is not indicative of future results. The opinions expressed here are those of Gary Fullett, and are not to be taken as a recommendation to buy or sell commodity futures or options. This is for educational purposes only.
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Bond [AUTOLINK]ETF[/AUTOLINK] List | [AUTOLINK]ETF[/AUTOLINK] Database

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There is a substantial risk of loss in trading commodity futures and options. Past performance is not indicative of future results. The opinions expressed here are those of Gary Fullett, and are not to be taken as a recommendation to buy or sell commodity futures or options. This is for educational purposes only.
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https://www.huffingtonpost.com/2012/02/29/flash-crash-in-treasury-bonds_n_1311068.html



end of an era for bonds bull rally - UBS

Forex Flash: End of an era for bonds bull rally - UBS

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GridKing View Post
Not "picking a top", it's a discussion thread that will most likely last a while with interest rates pegged to mid 2013 , we'll have to see what happens with equities at resistance as well , but noticing divergences that could return to proper inverse relationship ... also don't agree that natural gas, is similar to thinking that there will be an endless supply of lending at 2% -ish to U.S. .....

I agree. I think there's limited downside in the long term with rates where they are currently and the Fed ending op twist at some point. Their B/S can only get so big... The big issue IMHO is timing. Even PIMCO made that mistake... Is there a way to structure a good trade with a 1-2 year horizon?

Has anyone used options on ZN or ZB?

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Last Updated on November 14, 2012


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