Thursday, December 24, 2009
The Debts of the World: Bond Vigilantes Place Bets on US Treasuries for 2010
The US bond vigilantes are adding to their bets by placing shorts against treasuries:
But in the short term, as the 2-10 year spread approaches record steepness, it may be time to become a bull for the longer end of the curve. Especially after stories like this hit the media.
Further out, I have been considering placing bear put spread trades against the longer end of the curve by buying closer otm strikes on 30 year puts (LEAPs) while selling the same month strike further otm on the same expiration. 2011 and 2012 look like interesting bets w/2012 obviously safer because theta works in the call buyer's favor.
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- The Debts of the Spenders: Bond Vigilantes Target ...
- The Debts of the World: Bond Vigilantes Place Bets...
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