'I Hate To Remind Long Bond Bears About This But...'

Takeaway: Does Wall Street need the data to worsen, from here, to really get paid?

I guess, provided that you’re always fading the Fed’s forecasts, you can make money as a Long Bond Bull for longer too.


If you’re still keeping score, it’s hawkish (DEC), dovish (MAR), hawkish (MAY), dovish (JUN), hawkish (AUG). That’s right. You go girl! Janet has had 5 policy pivots in 7 months – and she’s one bad jobs report away from her 6th in 8.


Totally cool. Totally manageable. As long as GDP stays around 1%, 90% of Housing doesn’t slow more than -1.6% year-over-year, and Consumer Confidence doesn’t fall much from 4-month lows, right? Or do we need the data to worsen, from here, to really get paid?


The 10yr Treasury yield ramped right back to the top-end of my immediate-term 1.50-1.62% risk range, but now what? I hate to remind Long Bond Bears about this, but the last hike into a slow-down (the hawkish pivot in DEC) was THE catalyst for both Deflation’s Dominoes and rates to crash (and the Fed to go back to dovish again)



Editor's Note: The snippet above is from a note written by Hedgeye CEO Keith McCullough and sent to subscribers this morning. Click here to learn more. 

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