Selling Short Long Bonds?????

[adios]

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...the u.s. has still not cleansed itself of the excesses of irational investments...

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Probably true but that would mean slower economic growth I would think.

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can interest rates go lower??

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Sure they can. They were lower in 2003. Will they? I don't know but I don't think we'll see a 10 yr treasury at 5%+ anytime soon.

[Cazz]

There is an inverse bond fund.

Its the ProFunds "Rising Rates Oppurtunity" fund (Symbol RRPIX)

Link

It is -21% since its inception and -9% YTD, but it did have a positive return for Q3 and Q4 last year.

[GeorgeF]

I you really are looking to short bonds short BHY. It owns 'junk' and sells at a 50% premium so there are more 'outs' than shorting government debt. Make sure you can pay the 9% dividend.

http://www.cefa.com/scripts/fundstat.asp?id=BHY&d=1