Registered: Mar 2010
07-25-12 06:37 PM
Nobody knows when the long end will implode, certainly not me, and not even Bernanke.
But he'll ultimately lose control just like the ECB or any other entity that tries to fix long maturities for any extended period of time.
If you're long US 10's at 1.35% (using JGB's as justification), you're no different than someone with money in Madoff's fund who knows it's a Ponzi yet wants to get one more year of 20% returns.
PS - Ever seen Spanish bonds, Greek bonds, or Argentinian bonds?