With US 30yr bonds down about 4.5%, US 10yrs down about -3%, and Euro Bunds down -2.8% since their end of August high, the possibility exists that the top may be in for bonds.  If that turns out to be the case, and the bond rally does end up being a bubble – there looks to be a ton of room on the downside for bonds.

We wondered what such a bond sell off would do to managed futures in our weekly newsletter last night. (Read it here: Managed Futures & a Bond Bubble),  and wanted to share one of the interesting charts from our work on the newsletter (below) which shows much of the pain managed futures have been working through in 2009 and early 2010 were from reversals and sideways periods in US treasuries.