Given the total carnage in stocks, it is interesting to see that govt bonds are trading pretty "heavy". 2 weeks ago if someone said the S&P was going to hit 900, most people's guess for the long bond would be 125-130. Instead it's trading at 117, quite a bit below its high in September. Same with other G7 countries. IMO the bond markets are starting to anticipate huge increases in government debt levels, and inflationary pressures from a big boost in the money supply & govt spending, which will all be necessary to stave off systemic meldown. This gives a nice two-sided long premium play - long ES puts, long ZB puts. If stocks rally, bonds should fall since the flight to quality bid evaporates. If stocks fall, it increases the chance of inflationary policies. Bonds look in trouble either way. A true crash like 1987 may well give a one-day spike to bonds, that's why I advocate puts not shorts. If that spike comes, I would short the crap out of it. I reckon both short and long-dated puts are good here. Go deep out-the-money for maximum leverage. The 30 year is yielding 4% so there is HUGE scope for a total collapse based on fundamental value (or lack thereof). The yield could easily be 10% in 3-4 years time. It could fall 20% in 3 months and still be overvalued. Any thoughts?