Where will this stop? I do not know but I beleive the day is not far when some kind of US news will generate a massive reversal and rates will go up and gold will be up $50 in one day. This joke must end and end it will.
It is not going to end in the near term....so TBT right now is a losing trade. You will lose money due to the 2X levered decay factor. I expect yields to continue to move lower and TBT will move lower as well. There is a lot of money coming into the bond space from somewhere. Keep in mind that the U.S. looks better than all of the rest of the world...sounds unbelievable but it is true. We are in a very heavy deflationary stage less commodity appreciation that the Fed tried to buy unsuccessfully tried to buy our way out of. Housing and the tragic employment situation are consequences of a debt bubble that will take a few years to work out. Also watch out for equities rolling over, people are moving into fixed income out of equities. Short TBT is a best trade than long TBT for the near term.
TBT will go lower. My guess is that it will break 2010 low and go to $25 area. There will be a reversal, but because of decay the high that comes from there will probably be less than the $42 high hit in Feb. The high from the next cycle probably won't be hit until sometime in 2012 or 2013.