Apparently, traders are pricing in substantial inflation w/in a few months.But, as always, when one side of the trade gets crowded, the potential for a contrarian reversal increases. Bailout Ben might just live up to his name.
Monday, June 8, 2009
The Debts of the Spenders: Treasury Intra-Day Update
I normally don't post intra-day developments. But this action has got to take the cake for sheer craziness. The chart below measures the spread between the 2 and 30 year Treasuries . 
Apparently, traders are pricing in substantial inflation w/in a few months.
But, as always, when one side of the trade gets crowded, the potential for a contrarian reversal increases. Bailout Ben might just live up to his name.
Apparently, traders are pricing in substantial inflation w/in a few months.But, as always, when one side of the trade gets crowded, the potential for a contrarian reversal increases. Bailout Ben might just live up to his name.
blog comments powered by Disqus