Bond bull market to continue?

[murphy_p_t]

this suggests its entirely possible for plenty of gains in LTT moving forward...very interesting angle.

http://www.zerohedge.com/news/2013-05-0 ... sh-deficit

[Ad Orientem]

Zero Hedge posting something positive about bonds? I think the temperature just dropped somewhere.

[RuralEngineer]

Thoughts regarding the bond bull ending based on Bernanke's statements today?  Sounds like QE Infinity might be coming to an end...until it pops the stock bubble, but I digress.

[doodle]

Goldman statement below. Is it just me, or are the reasons they give for sell-off completely nonsensical? Their first reason is listed as "pessimistic growth targets" and their third reason is Japan's policies. Both of these would seem to bolster bonds and not lead to a sell-off. Does Goldman really think people are stupid enough to buy into this nonsense?

With yields on government bonds jumping in the past week, Goldman Sachs has warned that a widely predicted bond sell-off is finally happening, while a major U.S. asset manager has warned investors to move out of long-duration bonds to avoid heavy losses.


Pessimistic growth targets, a fear of the Federal Reserve curtailing asset-purchases, and uncertainty over Japan's "Abenomics" policies are the three key reasons that Goldman Sachs cited for the move higher in yields.

"The bond sell-off: It's for real," Goldman's fixed income analysts said in a research note released on Friday. "Our end-2013 forecast for 10-year U.S. Treasurys remains 2.5 percent, above the forwards, and we will be looking for other opportunities to trade the market from the short side."

[RuralEngineer]

They have to say something.  To be honest, if I had to make a prediction about the future of the bond market I'd probably be making shit up too.  Hopefully I wouldn't mention things like a pessimistic outlook that would lead one to think that a move out of bonds and into stocks was NOT impending...but those in glass houses and all that jazz.