Short Treasuries

although I do like long treasuries in the medium term and it is reasonable to expect yields to fall to sub 3% at the end of the year, I do think short treasures might be a good trade. Maybe yields would go up 20-40 basis points (right now, it is at 3.48%). I am doing this primarily to hedge the german government bond position, and it is a better "recovery" trade than going long on stocks since that asset class is moderately overbought.

short treasures at 100% nav. I'll look at the yields on the 2 year note and 5 year note as the bond market's expectations on the economy and/or inflation.