The generational bull run in bonds has been something to behold. As US treasuries have climbed higher and higher, we’ve been watching with growing anticipation for the first sign that the eventual reversal is coming. Unfortunately, every time it’s looked like a big swing downward is on the way, it has bounced back and resumed that seemingly never-ending upward trek (see our over-anxious calls covered here).

But now bonds have taken on a new direction which is neither up or down – bonds have been quite noticeably sideways of late. After climbing in May on the backs of the big risk market Euro fueled selloff, US 30 Year Bonds have spent most of June trading in a narrow range:

What can we expect on the heels of a period such as this? Is this tight range-bound trading a windup for big rip higher in the bond market? How much higher can they even go? Or, is this just a frustrated fizzle on a backdrop of continued global ambiguity? We don’t have a crystal ball, but we can’t help but feel a little nervous/excited that something big (we hope on the downside) is brewing for bonds.