Monday, July 18, 2011

Treasuries Sentiment ($TLT)

The latest commitment of traders report for the 30 year bond shows that speculators (dumb money) have gotten even more short, and commercials even more long. This is the widest the spread has been in a year. The previous high was in mid-April, which was the beginning of a big rally in bonds.

Second important data point, from Bloomberg: "Mutual funds in the U.S. that focus on bonds have the highest percentage of their assets in cash since 2008."

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