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Behold! The Epic Treasury Short Covering This Week
It must be technicals, right? As we discussed here, there are numerous reasons for rates to be low and going lower but the world of talking-heads will have us all believe that this is simple positioning and the rally is 'short covering'. In the interests of helping to dismiss that myth, here is CFTC's 10Y Treasury Futures Total Shorts... showing the 'dramatic' short covering that occurred this week...
Charts: Bloomberg
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Winning!!!
Tyler, can you please provide a close-up of the tail end of that chart, so I can "see" the short covering more clearly.
Thank you in advance.
Wait till they really cover
Punishing those who dare to defy the Fed.
Death from above, below and beyond.
Making money on my shorts on ZB, the Long Bond; holding for more profits. interest rates on the long end already bottomed.
It's out of date. the peak is already in.
LOL!!!
While I don't believe there was much short covering this week, this indicator is rolling on Tuesdays so this is all a little bit misleading.
AND, are those commrecials who are short, or specs? Big difference.
this shit is so slly... might as well stuff cash under a mattress.. LOL!!!
looks like a pair of hedge shears, somebodies gonna get castrated.
I was thinking more of an alligator, same endgame i suppose...
Refi what you can as soon as you can. this shit will be over soon.
It's going to be funny when the ten year pushes down to 2%. The shorts are going to get a corncob shoved up their ass until it bleeds.
pay my coupon short bitchez
I smell another bailout when this kills a TBTF
"low volatility"
"improving economy"
"record-high stock markets"
"record-high apartment sales in NY and London"
"Who could have seen it coming?"
Record food stamps, negative GDP print.
Improving alright...
They must be colluding with the Belgians. Low rates 4ever (or until jig is up then we are all fucked)!!!!
"Blow off starts to the year" are my kinda year. If you're a trader "that's money to burn."
Equities can still rally as "low rates are still low rates." But decoupling from the economy itself is no mean feat. If the yen gets slammed (emerging markets got annihilated today...far worse than gold or silver) then pricing power will be next to impossible to maintain save for energy which outside of coal has been in another world for sometime now. (Premium pricing.)
Ironically War with Russia is...well, I guess deflationary. If Putin's regime collapses it sure is. Taking and "holding" something that big would make Iraq look like a picnic.
We might have to keep Putin in power actually.
waiting for Q2 negative GDP print and moving out the sidelines for MEGA SHORT TREASURIES bitchez, wait 2.25% on the 10 years, double digits coming in 5 years and total dislocation of monetary system!
I propose 10-yr Short is the next "Michael Burry" moment where slowly, and then all at once, the Fed loses control and this Short explodes. I see this short in the same light as some on ZH see current versus future gold valuations.
Disclosure: rolling over current short position.
That is the way it will happen but the timing is going to be a bitch.
Come on Durden! This was the week after the first notice on the TY/ZN Futs, a lot of spread trades occured this week.
http://www.cmegroup.com/trading/interest-rates/us-treasury/10-year-us-treasury-note_quotes_volume_voi.html#tradeDate=20140529
Another misleading chart from ZH. I share a lot of similar views on this site but when it throws out incorrect or misleading data in order to continue to grease the wheels of its agenda, I start to lose a bit of respect for it.
Check CBT4TNCN <Index> for the real story. Tons of short covering the last couple of months.
if the shorts were covering then the number of shorts would have decreased, not increased - your chart shows an increased number of shorts
then again i have no idea what that chart is supposed to represent