SubscribeReally? You think?
Treasury 30-year bonds fell the most in seven weeks amid concern government efforts to spur the economy will lead to a record amount of debt sales as the U.S. prepares to auction $54 billion of notes this week.
“The Treasury market is worried about supply, especially the first week of the year,” di Galoma said.
My comment: The panic that drove everybody into Treasuries is subsiding as the TED spread, VIX, and LIBOR are all coming in a predicted. There will be more bad news and bankruptcies but we will see money begin to seek yield and return. The short Treasury long corporate bond trade is still good here. People that mange money are not going to sit in 10 year and 30 year bonds while their peers begin to move money into vehicles that are returning significantly more. Hiding in Treasuries is a sure way to lose your money manger job.
John Polomny
The Real Deal
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