Monday, August 13, 2012

Who doubts the force of gravity in the bond market?

I've received a lot of questions about where the medium to long term equilibrium in ZN might be.  Here is my 1 month graphical response. 

Looks to me like 134-20 (1 full handle above current prices) should appear before month end, unless the Euro area gets saved before then...odds on that??  (here's a dips)

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