Market Sentiment: Treasuries Despised, Current Rally in Denial

This is a follow up to the post I published earlier today: Medium-Term and Long-Term US Treasuries Are Quite Attractive At Current Levels [updated].

The quote below if from a Bloomberg report from today. What is very important here is that it shows the current extremely negative sentiment that treasuries are facing. “This isn’t a flight to quality, it’s a flight from disaster”. In the face of the obvious rally, this analyst is denying the forces behind the rally, and also showing how much he despises the far too hated treasuries.

Treasuries surged, pushing 10-year note yields to their lowest level this year, as Japan’s Prime Minister Naoto Kan asked for calm as engineers worked to cool three nuclear reactors damaged by last week’s earthquake.
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“This isn’t a flight to quality, it’s a flight from disaster,” said Colin Embree, the Singapore-based head of fixed-income trading and sales at Bank of Nova Scotia Asia Ltd., a unit of Canada’s third-largest lender.