Bonds Behaving Short

interesting - just a few minutes ago i put on a small (!) flattener. the reasoning is that after aby excess by Ben in the past he put on an exceptionally inflation hawkish face to save the Bond (and inflation expectations) soon after.
he is speaking tomorrow....

on top of that recession should steepen the curve - not flatten imho.
 
Short the ten year. The fed is bailing out the banks, look for a steeping yield curve and strong inflation over the next 6 months.

Consumer are going to get reamed, higher rates from the bond market and higher prices from inflation, but the banks will do better in the short run.
 
i agree with that but that's a strategy with at least few weeks horizon in mind. I am playing the flatenner with intention to close it within 1 week.
 
Quote from dhpar:

i

on top of that recession should steepen the curve - not flatten imho.
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it depends on what part of the curve, the short end of the curve would steepen as FED would be anticipated to be cutting rates.

the long end would assume FED is behind the curve, and flatten.
 
analysis of the 10/30 differential(yield curve) blowout and the equity market.

the degree the yield curve can blowout is pretty huge, and even though Bernie is viewed to be conservative(some may argue now), the yield curve should continue to blowout to inflate our way out.
 

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