Long-Dated Treasury Yields at 6-Month High (TBT, TLT)

Treasuries are seeing a continued slide as the impact of QE2 and raised economic projections along with higher inflation in China.  The 10-Year Treasury hit a yield above 3.39% and that marks the highest yields seen since June.

This morning is showing a 4.44% yield in the Treasury’s 30-Year long-bond.  While that yield hit 4.46% Friday and briefly appears to have challenged 4.50% earlier last week, we have to go back to the end of May to see the same yields on the CMT.

The Fed is said to be buying Treasuries out six to seven years on the curve, and this action is expected to start ahead of tomorrow’s FOMC meeting.  A headline late Friday noted about $110 billion was the indicated amount of Treasury purchase for the month ahead.  Whether that is the case or not is another matter.

ProShares UltraShort 20+ Year Treasury (NYSE: TBT) ETF is up 0.2% pre-market at $38.28 and its 52-week range is $29.77 to $51.21.  That one will see its price rise if Treasuries fall and their yields rise.  iShares Barclays 20+ Year Treasury Bond (NYSE: TLT) is there for those who believe bond prices will rise.

JON C. OGG