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Global markets are in the midst of a predictable relief rally to the technical bear market that recently became actualized off of various topping patterns that were in force for most of 2011. It is important to note that this is coming off of a similarly predictable whiff of a deflation scare, as US and European debt 'imbalances' (a polite way to put it) spooked the public out of asset markets and into US Treasury bonds, among other 'safe' havens.
Ben Bernanke, the current US Fed Chief, is a deflation scholar after all. He is the man for the job and if he was hesitant to do his job, as was the case last spring amid the 'austerity movement' and a red-lined long term T bond yield, he can be less so now. The 'bad cops' (Fisher, Plosser, Bullard, etc.) at the Fed have been marginalized for the time being with people like Robert Reich and Paul Krugman, along with their decidedly less financially austere views, are back in the public consciousness.
I find it ironic that the announcement of Operation Twist, in which the Fed would gobble up as many long-term bonds as they could, marked pretty much the top of the bond market. Things are falling to pieces at this point, and a fall to 131 isn't out of the question. You folks might want to discuss why this is the most epic of "sell the news" type examples.