Time To Short US Treasuries?

Barrons thinks that the yields US Treasuries are too low and are due to bounce this year, causing a major correction in the bond prices.

Amongst the reasons cited are strong gold prices:

One sign of trouble for Treasuries is the resilient price of gold, which has risen $150 an ounce since late October, to $880 an ounce, despite weakness in most commodity prices. Investors rightly see gold as an appealing alternative to low-yielding Treasuries and virtually nonexistent yields on short-term debt as the government cranks up its printing presses. Gold was up $45 an ounce last year, while oil was down 50%. Another worrisome indicator: The dollar has weakened recently, losing 10% of its value against the euro in the past month.

Chief investment officer at PIMPCO advised to get out of treasuries, stating that they're very expensive and offer no margin of safety.



Check out this post to see a way to profit from a potential decline in Treasuries.