Yes, by all means flatten the yield curve. Should do wonders for the economy. The only idiots here are the ones at the Fed - a bunch of Phds who think they can sit in a room and run an economy (don't you realize, they understand duration, let's all shut up and let them run things). The same sort of central planning (also done by phds) that drove the Soviet Union into the ground.
Bill Gross, bearish on the 10 year at 3.5%, has turned bull at 2%. Classic capitulation. I would use any rally on a Fed announcement to go short long bonds. Don't know whether to actually short the futures, buy puts on the futures, or buy calls on TBT, or buy puts on TLT ... will study. I bought puts on Treasury futures after QE2 began last year and made 10X my money, but I'm still not sure that was the best vehicle.
Bill Gross, bearish on the 10 year at 3.5%, has turned bull at 2%. Classic capitulation. I would use any rally on a Fed announcement to go short long bonds. Don't know whether to actually short the futures, buy puts on the futures, or buy calls on TBT, or buy puts on TLT ... will study. I bought puts on Treasury futures after QE2 began last year and made 10X my money, but I'm still not sure that was the best vehicle.