Long Bond Retraces 50% Of Taperuption Gains
Yesterday, when in the aftermath of the Fed's "shocking" announcement bond yields plunged, the bond kings, both old and new couldn't get to a media outlet fast enough to express their euphoria over the end of the selloff. Gross tweeted immediately that he was "not bragging but what did we tell you" while Gundlach added that he "sees a change in Psychology with the 10 Year below 2.7%."
It is unclear just what psychological change he was referring to, because looking at the market it was one of resumed selling: as of moments ago, the 10 Year has retraced over a third of its plunge and is back to 2.75% and rising once again; and the 30Y has retraced over 50% of its gains at 3.80%. We are going to need another un-Taper soon.
Of course, Gross was focused on the short-end - but even that is up 2-5bps on the day...
— PIMCO (@PIMCO) September 18, 2013
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