Monday, June 4, 2012

Bonds in outer space

The 10-year treasury hit 1.47 last night, and is trading at 1.51 this morning. Unbelievable. Valuation is stretched as far as the moon. This is one heck of a flight to quality, and a sign that fear is rampant. Surely this overprices any chance the Fed will do QE3 in enough scale to justify this.  

It is strange, though, that equities are holding in by comparison to the extreme craziness in bonds.

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