Interesting stats: "A JPMorgan Chase & Co. survey for the week through Oct. 2 found that clients as…

Interesting stats: "A JPMorgan Chase & Co. survey for the week through Oct. 2 found that clients as a whole soured on Treasuries, with 44 percent holding a short position relative to their benchmark. That’s the most since 2006 and up from 30 percent in the prior period. Among those who actively place bets, such as speculative accounts, a record 70 percent were short." https://www.bloomberg.com/news/articles/2017-10-03/bond-traders-place-biggest-short-in-treasuries-in-over-a-decade

Bond Traders Place Biggest Short in Treasuries in Over a Decade

Bond Traders Place Biggest Short in Treasuries in Over a Decade

After the worst losses for Treasuries in 10 months, investors are ramping up bets that the world’s largest bond market will decline further.

While the market has been short fixed income for most of the year, the reality is that interest rate volatility is near historic lows because long dated yields are stuck in a tight range. The lack of volatility is a primary reason for rising equity multiples because are convinced that low long term funding costs are here to stay

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