As rates fell last week, speculators in 2Y Treasury Notes added aggressively to their short positions. Positioning in 2Y Notes is now at its most short since mid-2007 (as 10Y Bond positioning surged to its most long in over a year), and if history is any guide to what happens next, rates are set to tumble.
The last time 2Y Note speculators were this short was mid-2007 and rates utterly collapsed soon after…
This post was published at Zero Hedge on 09/29/2014.
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