Former FX trader-turned Bloomberg contributor Mark Cudmore has had just about enough of you telling him why Treasury yields should be higher.
As you know, yields are saying something rather disconcerting about the outlook for the US economy. And notably, they seem to be saying something completely different than stocks:
Perhaps more concerning still is the rather dramatic flattening of the curve in what certainly looks like the market completely pricing out the Trump agenda:
This all coincided with aggressive covering of a previously sizable 10Y short by specs who in late April flipped long – yet another testament to a loss of faith in Trumpian reflation.
Well, coming full circle, the above-mentioned Mark Cudmore demands to know why you think Treasurys should sell off given the lackluster incoming econ data and the rather dour outlook for all of the policy proposals that were supposed to make short USTs one of 2017’s “no-brainer” trades. More below…
Via Bloomberg
U.S. Treasury bears haven’t come up with a compelling new argument in months, nor a reason why any of the old, stale logic will suddenly become valid now.
