alice

NFTRH; A Big Change in Bond Dynamics

Folks, more to come on the implications, you can be sure. But as relates to our earlier update on the Banks/Financials, which depend on a weakening bond/rising interest rate scenario, here is a quick update of bonds showing that the same contrary indicators that signaled the bounce (large speculators and the public) are now signaling something quite different. Bonds are now bearish on a contrarian basis and it is amazing how quickly the sentiment situation reversed.

Here are Commercial hedgers (smart money) now net short.

10yr

Here is the public, loving itself some 10yr Treasury bonds.

10yr optix

Note the 30yr is not as extreme, but is on its way as well.