“I’m short long-term government bonds,” betting the securities will fall, Jim Rogers, told Bloomberg Radio, yesterday. “I plan to short more. That bull market, that’s a bubble.”
That's in line with the analysis that EPJ has been putting out in the Daily Alert. Given the size of the current deficit and the fact that the Treasury will have to go into the market to finance Social Security and Medicare payments, the upward pressure on the Treasury market will be enormous. If the Fed steps in to push rates lower short-term, it will only mean added price inflation pressure that will ultimately push interest rates even higher.
The decline in Treasury bonds will be a multi-year event. It may last a decade.