"I would greatly appreciate if you could comment on the relevant advantages or disadvantages of shorting 7-10 yr. bonds via ProShares PST, and shorting 20+ yrs via ProShares TBT, which has already been mentioned in previous Comments?

"Gvmt Bonds are an entirely new area for me as I have never gone long, or shorted them, however I am in full agreement with you that shorting long-dated gvmt bonds could be in the early stages of a major new investment theme which could span many years. However, do 10 year bonds qualify as long term, and do you feel they are as compelling as 20+ years (from a shorting perspective)?

"I should mention that I have been a subscriber for about 8 years and look forward to your Comment of the Day, especially the Audio. There is no doubt that I have benefited from you acumen, and ability to see through all the market "noise" and focus on the real long-term issues and trends. I also used to be an original subscriber back in the old 'hard-copy days". At the time, although I had no money to invest, but your reports provided a sound basis for me to begin understanding the markets, the principles of investing and learning how to stay focussed on key themes despite conflicting views of the so-called Market "Experts" whose fickle opinions seem to change daily!

"Eoin has been a valuable addition to your team. Keep up the good work guys!"

David Fuller's view Thank you for your thoughtful words and for your interest in Fullermoney over so many years.

The main difference, as I see it, is that if we are right, 20+ maturities will rise in yield over the long-term more than 7-10 year maturities. You can see this in the relative performance for TBT and PST, which I also show as an overlay.

In considering these instruments, please also bear in mind that the yield will be an expense for those of us who are short. Therefore it will probably make sense to trade these instruments on a medium-term, buy-low-sell-high basis.

While the case for a long-term, ranging increase in Treasury Bond yields is strong (historic & weekly), in my view, please also bear in mind that they are most likely in a base development phase at present, of unspecified duration. However, given the climactic nature of the 4Q 2008 collapse in T-Bond yields (the Type-1 ending characteristic as taught at TCS) and the subsequent sharp rebound in 1H 2009 (the Type-2 extreme reaction against the prevailing trend reversal characteristic) subsequent action is likely to be the medium-term right-hand extension phase prior to an upside breakout.

Additionally, and adding to the medium-term complication, QE2 continues so the Fed is hoping that its further buying of Treasuries can delay an eventual rise in yields until there is clearer evidence of sustained economic recovery.