Via ZeroHedge.com

Note that GBN.V news is released on a day when Treasuries purportedly snap their losing streak. Bond prices may bounce, but the trend will be down for some time, and long term yields will rise. The FOMC might be active today, buying treasuries out of the market, but the market will resume the sell-off.

But not so for short term yields, esp. the 3-month treasury yield. Negative nominal rates should be a given, if it were not for massive printing of short term paper and vending it into the market.

The argument goes that when interest rates rise, so do equities, but not, apparently gold miners, which are equity prices. Gold miners saw their equity prices surge into the 1995 peak, when gold was trading at a mere fraction where it is now and hedging their production.

What is needed for gold miners to reverse course is a rise in yields, or a drop in bond prices. For gold to maintain its value, all that's required is for short term interest rates to remain where they are. And so far, this has been the outcome.

While I enjoy Scott Thompson's articles, they are far behind the curve.

http://www.321gold.com/editorials/thomson_s/thomson_s_032012.html

Zerohedge Treasuries Snap Losing Streak

Oh really? Treasuries snap a losing streak? Where? When was that? I missed it?

http://www.bloomberg.com/markets/rates-bonds/government-bonds/us/

-F6