Monday Links

Bonds. James Bonds.

• The commitment of traders for the 30 year bond shows that commercial traders are back to being very bullish and large speculators are the most bearish they have been all year. This is bullish for bonds - the speculators are caught short again going into an economic slowdown. Look for calls on the long bond to pay off again.
• Very important. Maturity Of Average Outstanding Treasury Debt Jumps To 8 Year High. This supports my thesis that the Treasury is deliberately terming-out the debt first before it can be "inflated away". Even more important - notice the chart showing the average maturity of treasury securities owned by the Federal Reserve. It is falling, meaning that the Fed doesn't want to own the longer maturity paper!
• WSJ: Some day the bond bears will be right, but they haven’t been so far.

Misc

• European leaders to consider default as part of Greek rescue.
• Most companies are terrible at timing share repurchases.