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.
