Wall Street Consensus Chasing Its Tail: Long Bonds After Being 'Massively Short' - chasing tail

Source: Life with Dogs

As Hedgeye Senior Macro analyst Darius Dale writes in today's Early Look Wall Street consensus went from "massively net short" the 10-year Treasury 2.5 months ago. Now they're long:

  • 10-year Treasury net non-commercial futures and options positions: +179,994 contracts outstanding
  • Trailing 3-month minimum: (365,619) contracts
  • 1-year Z-Score: +1.3x

"It probably means the balance of risks for yields is skewed to the upside, but that the curve may continue to flatten – albeit at a slower pace – as the Fed continues down the path of policy normalization," Dales writes.

Wall Street Consensus Chasing Its Tail: Long Bonds After Being 'Massively Short' - Chart of the Day 5 10 17