Watching the Bonds

Cramer's not concerning himself with ratings changes; he's busy concentrating on bonds.
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Soundview

upgrades blah, blah, blah.

Montgomery

downgrades blah, blah, blah.

Goldman

pushes blah, blah, blah.

I don't care. I am watching the bonds.

It is not just that I am long them. Although that certainly piques your interest. But if we are going to resolve this financial/consumer services vs. bonds dilemma -- that's where bonds go up in interest yet the stuff that usually goes down when rates go up is going up -- we need to see rates go down. We need to see that 30-year trade back to 95.

Many of you have emailed me about bonds and where they are trading. I don't use the Net for bonds. Maybe I should. I trade bonds, so I have to have them on my screen. Right now, it looks like the bond is going my way, but that would be quite a reversal.

We keep being puzzled about this demand issue. But here is our latest take: The part of the world that was strong in the fourth quarter, Europe, has gotten much weaker. The part of the world that was weak in the fourth quarter, Asia, has stabilized. And the part of the world that looked terrible going into the first quarter, Latin America, has just simply vanished.

How that could possibly end up as a 6% long bond is way beyond me. Guess that is why I am buying.

James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Cramer's writings provide insights into the dynamics of money management and are not a solicitation for transactions. While he cannot provide investment advice or recommendations, he invites you to comment on his column by sending a letter to TheStreet.com.