Tuesday, December 9, 2008

More On Long Term Treasuries

I have suggested that the next bubble to "pop" may be in long term Treasury yields. After all, yields on the 10 year Treasury are at 50 year lows. I think the secular trend change (if it does come about) for higher yields is probably several months away. In the interim, yields should find support at the lower channel line. See figure 1, a weekly chart of the 10 year Treasury yield.

Figure 1. 10 Year Treasury Yields/ weekly

You can link to a video of Tony Crescenzi, Miller Tabak + Co. and CNBC’s Rick Santelli discussing the possibility of a bubble in bonds.

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