Is This The Line In The Sand For US Treasuries?

With the auction looming, 10Y Treasury yields appear right at the 'line in the sand' with aggregate net positioning in Treasury futures near record shorts...

Across the entire Treasury futures complex - from 2Y to Ultras - net aggregate speculative positioning is about as short (in 10Y equivalents) as it has been since 2010...

 

Which could be a major problem given that 10Y Yields are testing 1.70% once again - the 'red' line in the quicksand of Fed credibility...

What happens next? By way of interest, with the S&P back near May 2015 highs, we note that 10Y yields are 60bps lower from the same date!!

 

h/t @Not_Jim_Cramer