Time for a bear market in bonds?
Treasury yields tend to rise in December (meaning that bond prices fall). If not for a massive drop in 10-year note yields in December 2008, it would be the weakest month for bonds. It’s also the start of a weak seasonal period for Treasuries that lasts through April.
If Bernanke decides to put the helicopter in the hangar, or even hits at it in December, this would be a big trade and point to sustained US dollar strength.
