The Last Time Commercial Traders Bought This Many Bonds, Interest Rates Collapsed

Commercial traders are net long more bond contracts than at any point since 1992 other than in the spring/summer of 2005 according to the latest data from the Commodity Futures Trading Commission.

As Gavekal Capital's Eric Bush points out, they were a bit early in 2005 but ultimately 10-year yields declined from 5.25% in 2006 to 2% in 2008.

5-year yields ultimately declined from 5.15% to 1.36%.