Long End Bonds

I have mentioned many times  over last few Weeks the persistent Flattening of US yield curve.A day of reckoning was coming  for that trade and that day may have come.One step closer with tax bill becoming law,Upbeat comments from Fed officials regarding Inflation and growth are also changing sentiment..A one way trade just needs a sliver of worry to turn around and we are seeing that today.

Look how  yield curve is steepening today  as Long end sold aggressively when compared to short end.The time to exit the flattening trade may be forced upon late to party traders today. 2-10 1 minute chart


2/30  1 minute chart


5-30 steeper

305Most likely volatility will continue if the forced unwind of this trade continues


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