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Wednesday, June 1, 2011

Near-term Correction in Yield




If the upmove in 10-year yield from the October 2010 low at 2.33% to the February 2011 high at 3.74% represents the first upleg of a new bull phase (higher yield), then all of the action since the February high is a correction that should be bought ahead of a resumption of the prior upmove.

It is with that in mind that we look to add to our model portfolio position in the ProShares UltraShort 20+ Year Treasury (TBT) into current/near-term weakness.


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