After America's commercial/investment banks crushed all momentum chasers hedge funds in 2014, with one after another after a third recommendation to go long stocks and short bonds starting in late of 2013 and repeating the broken record every single month because, you know, "the recovery", ignoring the massive outperformance of bonds over stocks in 2014 as Treasury shorts have been forced to cover at ever higher prices now that the global economic emperor was finally was revealed to be completely and utterly naked (thanks Goldman [3])...
[4]
... one would think that banks would have eaten at least a little of their own cooking, and partaken in what has become a ridiculously crowded 10 Year TSY short, which according to the latest CFTC COT report saw another 131K net shorts added, the most since May 2014.
[5]
Well, one would be wrong. As in very wrong. Because as the following H.8-sourced chart shows [6], not only have commercial banks not added to Treasury shorts, but their long exposure of Treasurys (page 2, line 5) is now the highest in... ever!
[7]
So as banks were urging their clients to short, short, short bonds, they bought, bought, bought every single CUSIP they could find.
Which should not come as a surprise to anyone.
Source [6]
