This year, buying long-dated Treasurys has turned out to be one of the most
profitable trades. Treasury bonds maturing in more than 20 years have handed
investors a whopping return of 29% this year through Wednesday, according to
data from Barclays. The return got an extra boost with Thursday's 25 bps drop in
the yield. Now, as many traders expect 30-yr yield to tumble further thanks to a
supportive Fed, the return could rise further. That is bad news for bears as
they need to continue to cover shorts. Pimco's Gross has been buying Treasurys
in recent months. Gross admitted earlier this month that he made wrong bets on
Treasurys.
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