Jim Rogers says he will short the US Treasury Market if rates keep rising (via @Alea_).
He told Reuters:
“If the bond goes up another 3 or 4 points, I for one am going to sell it short.
I just think at some point along the line, people are going to realise it’s absurd to lend money to the United States government for 30 years in U.S. dollars at 3 or 4 or 5 or 6 per cent interest.
I mean the market is just going to give up. Once (the Fed) … stops buying bonds I’m not sure who’s left to buy bonds at that point.”
But Rogers isn’t shorting treasuries yet, and although Bill Gross is betting against them, his is mainly a rates play. The bond vigilantes still haven’t materialised.