Was that the TBT bubble that I just heard pop or the champagne bottle that I uncorked?
The unloading of Treasuries by hedge funds and other institutional traders will overwhelm anything the government throws at the long term Treasury market. Those short Treasuries will also be scrambling to close out their positions next week.
I may be wrong, but I think that TBT has bottomed and will be working its way up for quite a while.
If I am correct, the Fed will be taking quite a bath over the next couple of years on their "twist" trades.
Not to worry, they can create more money to replace what they lose :)
I'm not sure about the bottom yet but I agree about the slow grind up over next few months. FED lost control over the stock market long time ago and they are about to lose control of the treasury market. Bernanke will have to resign. That is my prediction. Those trying to ride on FED's back are soon going to be sorry.