The treasury bears will cover, but at what price? That’s an unknown, but we can see when the bears increased their bets. And with that we can check gains for someone who held on.
10-Year Treasury Yields
That’s one hell of a lot of bearish sentiment with virtually no price action.
Gundlach on Bonds
Massive increase this week in short positions against 10 &30 yr UST mkts. Highest for both in history, by far. Could cause quite a squeeze.
— Jeffrey Gundlach (@TruthGundlach) August 17, 2018
Final Leg With Record Short Position
Still going to see new lows in rates in the first half of 2019. 10yr to 1/2% & 30yr to 1%. TLT to $160. The bond correction is behind us. Even with the S&P heading for steep new highs near 3300, I still expect rates to trend lower & then to plunge when a global bust hits next yr.
— David Hunter (@DaveHcontrarian) August 17, 2018
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