JPM reports that its institutional clients continue to short Treasuries through the end of last week, to the point where they are the most net short since 2006. Of course, that was coming up to the last bubble top and was followed by an epic collapse in Treasury yields. I expect the same as Treasuries fall into line with global sovereign bond yields, probably with the 30-year bottoming out sub-1.5%. Anyway, here’s the chart, thanks to zero hedge:
The bond rally has been going for thirty years, more or less. And it is not over until the final capitulation where the faith in the Fed is finally shattered.
Oh, and that Eurozone CPI? 0.5% y-o-y. On its way here.