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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: MulhollandDrive who wrote (10420)	10/24/2008 11:48:35 AM
From: Hawkmoon	Respond to of 33421

So, presuming that the Treasury is permitting these FTDs to occur in the Govt bond markets, does that suggest that they are engaging in widespread naked shorting to meet the demand for Treasuries in order to prevent the yield from going even lower? IOW, demand for US govt treasuries is so huge that only Naked shorting meets that demand? Very interesting information.. Because in the case of Treasuries, the only recourse to meet that demand would be for the government to be increasing the supply ($700 billion worth) which means the shorters are taking advantage of this in expectation of bonds being issued to cover their shorts? Help me get my arms around this.. My personal belief is that going short on government bonds wouldn't be a bad position given the current yields in the 3-month Treasury: ustreas.gov And John.. what's your take on Mulholland's info? Hawk