Tuesday, May 29, 2012

Closer to a Top in Treasuries: "Hedgies Pile Into Long Bonds" ($TLT)

"Large speculators aggressively bought 30-year T-bonds futures by ~500% to $7.2bn notional from $1.2bn notional last week. Readings moved into a crowded long for the first time since Dec. ’07."
This is great. Everyone fought the long bond rally for so long... and now they have given up and embraced it as it retests last summer's high.


effmanny said...

CP anything else besides TLT that you think would be good for the top in treasuries play?

CP said...

Short TLT or puts on TLT makes sense.

Also, if there was any real estate that was not overpriced, buying it now with 30y financing makes sense. I'm not sure what type of real estate this would be, though.