One Trader’s “Pathetic Attempt To Justify A Bond Short”

For bond bears like myself, yesterday was an ugly day. Fixed income prices ripped higher, egged on by continued escalations of the North Korea situation with an added dose of poor economic reports for good measure. Some dovish Fed talk was the icing on the cake, and there was no mercy shown for bond shorts.
Although I am licking my wounds, the hedge fund community is relatively well positioned for this move.
The long end of the bond futures curve has rather large net long speculative positions.
Hedgies and other speculators have more than 284,000 net contracts of 10-year futures.
And they are net long 56,500 of the longer dated contract.

This post was published at Zero Hedge on Sep 6, 2017.