We started getting excited about a long-term bond bear in December when it broke that Bridgewater’s Ray Dalio was ready to jump on board the bond bear bandwagon. Ok, that’s not entirely true – we’ve been anticipating a sustained downtrend in bonds (higher interest rates, lower bond prices) for a long time. But normally, when we write about what we wish the market would do, it does the exact opposite. So we’ve been holding off on pointing this out, but, well, we couldn’t hold back any longer:

Chart courtesy Finviz.com. Disclaimer: past performance is not necessarily indicative of future results.

30-year bonds are at a nearly 9-month low, and the trend since mid-November has been consistently down. Call it what you will – the great rotation, a reversion to the mean, the rise of the “bond vigilantes” – but we’ll be calling it a nice start to a trend we’ve been long anticipating. And it’s one that, if it continues, could be very good news for managed futures.