Rates Jump On Fed (Non)Decision

Yesterday in my blog, I discussed rates on 10-year treasuries rising above 3%.  The Fed didn’t make a change on rates today as expected and basically said what I believe they would.  The economy is still contracting but at a slower pace.  Markets didn’t really react to it at first but have firmed up since.  But, we are seeing a move out of treasuries and into equities.  As I stated yesterday, short treasuries is a nice trade (and investment).  TBT will get you short treasuries.  Below is a picture of TLT (long treasuries).  You can see it broke down right after the decision came out.  I’ve attached an intraday chart.

tlt-intraday-4-29-09

Somebody wrote me yesterday about buying puts on TLT noticing a lot of put volume.  They are paying off today.

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