Quick updates on Trackers

Markets were led today by continued weakness in the US Treasury markets as the yield curve continues to blow up and steepen as long duration bonds getting hit hard! Here is how the curve settled out today:

Continued selling in the 30Y and 10Y most likely against front end buying of shorter term notes. Eventually theses losses are going to start to force some large levered players to unload their best assets as losses mount. This usually occurs when assets underperform or fail to deliver in regards to expected return.

The entire global economy has been built upon ZIRP and QE and now the FRB has laid down the gauntlet and its only a matter of time before the mean reversion settles in.

As far as the overall settlement page today the carnage in the bond markets was obvious:

As far as the GFBP futures position sentiment, there are a few notable changes today a bond short was added, added sales in the Nasdaq and covered almost all of the Silver long:

As far as the MEGA8s they were all higher, weak shorts taking profits but this didn’t do anything to change the bear case in these names right now:

Ok that is it, we await further data at the end of this week. We do have about $312Bn in US bills and notes this week including fresh 2s and 5s. This supply will continue to plague the fixed income sector as the US govt sees no end in sight for their frivolous spending…

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