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

2100

2/30  1 minute chart

302.PNG

5-30 steeper

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

 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.