Heavily bearish on US long-term Treasuries

(Last Updated On: August 12, 2011)
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Heavily bearish on US long-term Treasuries

US 10 yr and 30 yr Treasury yields were driven down severely by panicky equity investors despite the downgrade. People still believe the conventional wisdom that when equities go down, go for bonds. But with disappointing economic data, the credit market will only keep deteriorating and it will get harder and harder to borrow money for long term. The Fed’s promise on interest rate and potential QE3 can do nothing but make US bonds worth less


But as long as panic in equity market exists, the yield in treasuries will decline, ppl who hold treasuries will gain.

I  am with ya. I would begin a pyramid into the short-side today


What does this have to do with automated trading strategies?


I agree with you in terms of short term. In mid and long run, I believe the credit situation will deteriorate. Unconfirmed source says there’s already institutional investors bidding for US 10 yr at 4% – 5%. True or not, it makes sense to me.

I would be great to short the market yesterday but definitely not today. 🙂 The market probably will be very volatile for a while.

Thanks for replying. I agree it is not necessarily related to auto-trading. But I guess sharing ideas about the financial world should not be a bad thing here.


It might be helpful to understand human traits in Auto-trading strats- No? a great time to start a pyramid..well too late , already started it. …aren’t markets great!


I’m sorry I didn’t get it. what do you mean by pyramid? thanks


—-I agree with you in terms of long run. But how are they bidding 10 year T at 4% to 5% when the yield is around 2.27% right now. Thanks



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About caustic

Hi i there My name is Bryan Downing. I am part of a company called QuantLabs.Net This is specifically a company with a high profile blog about technology, trading, financial, investment, quant, etc. It posts things on how to do job interviews with large companies like Morgan Stanley, Bloomberg, Citibank, and IBM. It also posts different unique tips and tricks on Java, C++, or C programming. It posts about different techniques in learning about Matlab and building models or strategies. There is a lot here if you are into venturing into the financial world like quant or technical analysis. It also discusses the future generation of trading and programming Specialties: C++, Java, C#, Matlab, quant, models, strategies, technical analysis, linux, windows P.S. I have been known to be the worst typist. Do not be offended by it as I like to bang stuff out and put priorty of what I do over typing. Maybe one day I can get a full time copy editor to help out. Do note I prefer videos as they are much easier to produce so check out my many video at youtube.com/quantlabs