Thursday, June 07, 2012

It's coming and they won't turn the light on

12 basis points.  A blip in the trading day.   A fat finger trade away.   That is how many basis points a long dated US Treasury bond needs to move down in price to LOSE ONE YEARS INCOME derived from that bond.

There is going to be some real carnage in the bond market.  It will make the 1986 bond market break look like a walk in the park.  Bank on it.  

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