“A Violent Downside Break”: Why One Trader Thinks The Christmas “Pain Trade” Will Be Especially Painful

Jon Alternative Media, Blogosphere, Economy

Before you shut down that terminal for the year, hoping that the year is – mercifully – finally over, you may want to consider that according to former Lehman trader and current Bloomberg macro commentator Mark Cudmore, the Christmas pain trade is about to be unveiled, and it will be especially painful for all those short Treasurys. As Cudmore warns, with ten-years stuck in a 2.3%-2.43% range for the past seven weeks, “the arguments are adding up for a violent downside break during the weeks ahead.”
Here are his arguments why, as laid out in Cudmore’s latest Macro View :
A Treasuries Rally May Be the Christmas Pain Trade Post-Fed price-action suggests Treasury bulls may stampede while traders are in holiday mode.
Ten-year yields have been stuck in a 2.3%-2.43% range for the past seven weeks. The arguments are adding up for a violent downside break during the weeks ahead.

This post was published at Zero Hedge on Dec 15, 2017.