$USB Monthly

The bond markets might be accomodating a decline in GBN.V shares, if you were meant to first sell shares you do not own and then parry the money into U.S. or Canadian long term treasury bonds, but GBN.V did not sell on the biggest rise in bond prices in a long time.

What GBN.V shares have priced in for a period of a year is a continuous rise in bond prices from the time they had sold off in a major correction. This month is seeing the close of a downgap created months ago, though technicals have not improved on the monthly chart for long dated bonds, and do not appear to have a way out in the forseeable future.

Sell-side brokers have to be gambling on the demise of the company. You have to remember that the biggest financial liability is the negative carry in the stock. That means almost the entire publicly held float is sold short.

http://scharts.co/YRwPBp

http://web.tmxmoney.com/futures-quote.php?qm_symbol=/CGB

-F6