Treasury bond yields will have to go up alot given the reckless spending our government is engaged in. The Obama budget is insane and will lead to higher yields as we finance our deficits with more treasuries then ever before. This will continue for several years to come. Be alert for this and do not get burned as treasuries fall and yields skyrocket. I would short the long treasuries by buying (TBT) which is a short ETF that goes up when treasuries fall and yields go up as I am predicting will happen. You can hold this long if you would like, but I would get out when the yield on the 10 year gets around 4%. This is because the economy will still be very weak and people will demand bonds. Then as it comes off the 4% level you can get back in, after you made some easy money.

Tags: Budget, Deficit, Economy, Government, Obama

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