Six Reasons To Short Treasuries

Here are six reasons why I am now all-in ProShares UltraShort 20+ Year Treasury (TBT) and why I am making long TBT a Kass Katch: The flight to safety, which has buoyed U.S. bond prices (and reduced yields), is likely maturing and in its terminal phase. A potential catalyst could be a more proactive ECB, which stabilizes the eurozone debt crisis. The high-frequency economic statistics in the U.S. are coming in better than expectations. This morning's initial jobless claims number (388,000 vs. 395,000 expectations and 393,000 the week earlier) and yesterday's stronger industrial production and better housing demand -- while starts announced this morning were slightly better than expected, building permits (at 653,000) came in more than 50,000 ahead of forecasts -- are the most recent examples of a domestic recovery gathering strength.