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Editor's Note: Below is a chart (and excerpt) from today's Early Look written by Hedgeye CEO Keith McCullough.

CHART OF THE DAY: Did You Buy Treasuries? - zcc

The other big thing that happened with #StrongDollar and Global Quad 4 economic data last week was that the biggest nominal net SHORT position in macro (short Treasuries) continued to get unwound:

A) US 2yr Yield was down another -2 basis points last week to 2.79% and is now Bearish @Hedgeye TREND
B) US 10yr Yield was down another -5 basis points last week to 2.99% and is now Bearish @Hedgeye TREND
C) Yield Curve (10s minus 2s) compressed another -3 basis points last week to +20bps wide 

Obviously when Yields move to Bearish @Hedgeye TREND that makes the underlying Treasury Bonds Bullish @Hedgeye TRENDs. With UST Yields down for 4 weeks in a row, I just thought I’d mention that again as that’s one of our best new asset allocations (Treasuries across the curve) when the US economy slows from Quad 1 and 2 into Quad 4. 

CHART OF THE DAY: Did You Buy Treasuries? - 12.03.18 EL Chart

CHART OF THE DAY: Did You Buy Treasuries? - early look