Five years

Real nice move in the  shorter part of the U.S. yield curve and Some, if not most of it due to Short covering.The Risk Off trade helping and roll activity as well. Surprisingly the March rate hike probabilities stand at 38% ,up 3% from Tuesday and the highest this week.This evidence would be bearish to neutral not bullish  for five’s.

five-year

Chart above is the March 5 year future with Open interest  the bottom  histogram.Pretty clear to see that prices  took a leg higher with open interest dropping precipitously,this is a text-book example of short covering.To reference my points above is this due to roll activity,slow down in economy or just unwind of trump trade?Dont know just yet,but what we do know is that Short covering is ongoing in 5 year complex.

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