The epic voyage of USD Longs and Treasury Shorts continues...
[3]
US Dollar speculative long positioning increased $2.5bn this week to a new record high $47.6bn (as EUR and JPY shorts rose further).
[4]
But it's not just the USDollar...
10Y Treasury Spec Short positions surged since the end of QE3 and Bullard's QE4 hints...
[5]
To their 'most short' since May 2006...
[6]
Each time in the past 17 years that shorts have surged, the squeeze comes and yields tumble.
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Of course, specs are merely following the "Don't Fight The Fed" meme as they 'sell bonds' like they are told by The Fed - since the 'market', despite being its most negatively positioned in over 8 years, is apparently 'mispriced' (which as Rick Santelli explains below - is utterly ridiculous)
"if The Fed hasn't made up its mind" about when and how rates will rise, "how can markets 'price it in'?" ... and the rant ignites from there...
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We are sure this will all end well.
