Home > Main > Inverted Head and Shoulderish formations in the Long End of the Curve

Inverted Head and Shoulderish formations in the Long End of the Curve

March 10, 2011

All of the long Treasury Futures are showing the potential for serious gains with Head and Shoulders formations.

The “inflation is coming sell the USD” meme is giving way to “the world is really close to deflation” meme.  What are the odds that Bill Gross needs to buy $200bn of Treasuries in the next few months to have any hopes of matching the benchmarks?

10 Year looks like it has already pierced the neckline, target at 124+ March translates to 123+ June Contract.

30 Year very similar formation…

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  1. Tom Hickey
    March 10, 2011 at 10:24 pm

    What are the odds that Bill Gross needs to buy $200bn of Treasuries in the next few months to have any hopes of matching the benchmarks?

    Jeff Gundlach for one thinks the odds are good. He’s taking the opposite position.

    • TC
      March 11, 2011 at 8:06 am

      Maybe I misunderstood, but Jeff Gundlach is buying bonds? He of the “I hate the fiscal position of the U.S.?”

      I think the odds are also very good that Pimco will need to buy a decent amount of bonds…

  1. March 14, 2011 at 12:39 pm
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