Invisible Hand Pushing Bonds Up At Support

The 'invisible hand' is pushing hard to hold support. The bond bears are right, but getting TIME right will not be easy as point, click, and forget.

US Treasury Bond 20YR+ (TLT) And Bond Diffusion Index (DI):


Headline: Treasury's Oldest Bonds Show Covert Demand With End in Sight for Fed's QE2

Investors are paying the smallest discounts for Treasuries other than the newest, most-traded bonds since the start of the financial crisis, a sign of growing demand even as the Federal Reserve’s $600 billion buying program approaches its conclusion.

Yields on older notes with 10 years left to maturity have fallen to within 11.4 basis points, or 0.114 percentage point, of those on the newest securities of the same maturity, down from the peak of 66.1 in January 2009, according to data from Barclays Plc. The gap for so-called off-the-run notes narrowed to as little as 6.6 basis points in February, the least since May 2007.

Source: bloomberg.com