Maude.....QUICK SELL T BONDS !

[Peter Hansen]

According to an article by John Crudele , NY POST 5/28/09 . Now is the time to unload Your Treasury Bonds. He says , "Losses in long-term government funds are inching up to near 20%....in just five months.And the WORSE could be ahead" Not very encouraging words from Mr Crudele. Large auctions are coming on June 10 with Washington to be selling an .....ahem indeterminate amount. The SHI* wil hit the fan when nobody is around to buy. Washington is buying large amounts of the securities.....and needless to say , one of our largest buyers , China is worried!
Notice how commodities are spiking higher as inflation prepares to go into HYPERDRIVE!
Not to worry .....you can always make lemonade from lemons...yeah and after selling our bonds ,how do we accomplish that? Simple BUY Pro Funds ETF TBT which ULTRA SHORTS 20+ Year Treasury! Watch this baby rise as rates go up ,and bond prices continue their downward spiral into the crapper!

[Stuck]

The oil and commodity action seem speculative to me.. but the dollar is going down too which helps that speculation.

I don't see demand (consumer spending) picking up in such high unemployment/tax environments to increase inflation significantly. IMO.

[Stuck]

Looks like T bills are still popular. and the yield this week fell sharply on Friday to even up the gain on Thursday.

June 1 (Bloomberg) -- For all the hand-wringing over the dollar’s slide, the expanding U.S. deficit and the nation’s AAA credit rating, the bond market shows international demand for American financial assets is as high as ever.

The Federal Reserve’s holdings of Treasuries on behalf of central banks and institutions from China to Norway rose by $68.8 billion, or 3.3 percent, in May, the third most on record, data compiled by Bloomberg show. The Treasury said bidding from foreigners was above average at its $101 billion of note auctions last week.

U.S. government securities have tumbled 4.3 percent so far this year, the worst performance since Merrill Lynch & Co. began tracking returns in 1978, as so-called bond vigilantes drove up yields to punish President Barack Obama for quadrupling the budget shortfall to $1.85 trillion. The purchases by foreigners show that, at least for now, there’s little chance of buyers abandoning the U.S. or threatening the dollar’s status as the world’s reserve currency.

http://www.bloomberg.com/apps/news?pid=20601087&sid=a2SyGn6BWbWA&refer=home