Hedging Strategy (response)

Ah, something I can answer definitively :)
If we assume your portfolio of risky assets is on an efficient frontier, then the tangential line to the left of the "market" point indicates how much cash you have on hand (opportunity cost). The line extending to the right indicates leverage.

Now the key question is, if you buy those bonds, do you believe you will be headed closer to the Market portfolio or below? We know you are above, so this is bit of a subjective question. If you are buying enough bonds to be at or above the Market weight, then leverage is good. If you are below, then you may be at a suboptimal point where you are taking on more risk for the proportional return.
Hope that helps!

(note, I wanted to get the picture in and could not do it in comments)