At the rate things were going in mid-January, the 30 yr yield was set to blast through the June 09 highs. Amazing what a little equities downturn will get you, as a 9% correction in the S&P 500 has now rewarded T-Bond futures with a 2% rally and a 100bps decline in the cash yield (not too disimilar from Keynsian stimulus efficiency). With these ratios, the 30 yr should retest its October low by the time the S&P is retesting its March low. Don't worry though, the next massive corporate to sovereign risk transfer scheme, otherwise known as QE 2.0, is being vetted as we speak at 33 Liberty.
The good news is next week's $81 B in coupons should be a bit cheaper for Treasury
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