- “CTA Selling Of Bonds Has Gotten So Relentless It Looks A Little Unnatural”
by Tyler Durden, https://www.zerohedge.com/
Yesterday, when looking at the latest CTA positioning, we said that “CTAs Are The Most Short Treasurys Since 2018… And Getting Shorter” warning that we could see a massive flush if and when the 10Y broke above 1.50%. Well, one look at the 5Y future today and it looks like we were right.
Making matter worse, the CME today reported that its Ultra 10-Year Note and 30-Year Bond futures broke volume records on Feb. 23, as the U.S. Treasuries rout paused before resuming the next two days, meaning that real money is now also aggressively selling rates.