Buy 30 year treasuries

The federal reserve is now utilizing the same strategy Japan did starting in 2001. Quantitative easing. Part of that strategy is to go directly into the treasury market to drive down the interest rate. This has the effect of making treasuries less desirable and other more risky investments the alternative at lower rates of return.

In my view, buying the 30 year futures, or TLT is the way to go. Free money direct from the federal reserve.

 

Lock myself into 30 year treasuries when interest rates are at an all time low? Are you high?

 

Have you looked at TBT?

 

The OP wants to be LONG at the top!

TBT would make too much sense.

 

It doesn't mean they can't go lower. Did you not read my post?

 

Surdo


Registered: Sep 2005
Posts: 3467


New Post 11-18-08 12:39 PM

Quote from trader123abc:

Have you looked at TBT?



The OP wants to be LONG at the top!

TBT would make too much sense

 

the Fed might do some kind of grand intervention on the 10y. its not unthinkable by any means, they outline that plan themselves so we better not think they are kidding

 

What if the Fed were to bid-up Fed Funds AND Eurodollar futures all the way to "par"?

 

whats the all time high on the 30 year??

 

Do some simply math. In the 1980s buying 30yr treasuries would have made sense.
But, by how much do you expect rates to go down (considering where they are at now? And by how much would you expect a 30yr treasury to rise in value? No by much.