Treasuries

Posted on Winterwatch in response to a prediction of Treasury bond
collapse:

Go long bond. Go, baby, go. Treasuries won’t crash until they become the next bubble. Did they ever crash in Japan? No. Did Japan print and borrow
Trillions. Yes.

Also, think of all the pension funds, insurance co’s, etc. that have to invest in AAA… there aren’t many MBS left for them to invest in. Come to think
of it, there aren’t many inv. grade corporates out there either… Bullish for
bonds.

Inflation falling from 5% to -3% is hugely bullish for bonds.

Bernanke’s out of ammo and his next trick will be to buy bonds and push the yield curve down out to 3-5 years. Again, bullish for bonds.

Obama wants a pre-pack bankruptcy deal for automakers. Bullish for bonds.

That being said, I’m probably going to take profits here. Short term, the train has left the station, but watch for another shot.

Then again, the employment report comes out next Friday. Maybe I'll hold on. Not sure yet.