yes thorburn - I think we are both agreed that eventually the fed will bite the bullet and begin to raise interest rates in the US sometime within the next year and that US bond rates will some time in advance of this begin rise in anticipation...
I understand the maths that if bond rates go up from say 2.5% to 3% that's a 20% increase and that bond prices would go down by the same amount - 20% .... so if US bonds can be shorted, it would appear in the long term that would be a no brainer investment - sounds to easy
It sounds like you might know a bit about all this.... would you be able to direct me to some
publications and also to where this sort of trading might happen..... after reading up I might come back to you with a few queries if that's alright....
apparently there are signs to look for with the relationship of yield for the different term bonds also..... I might have to get Richard Farleigh's "taming the lion" out of the library again as he touches on this form of trading also...
