Commercial traders are net long more bond contracts than at any point since 1992 other than in the spring/summer of 2005 according to the latest data from the Commodity Futures Trading Commission.
As Gavekal Capital’s Eric Bush points out, they were a bit early in 2005 but ultimately 10-year yields declined from 5.25% in 2006 to 2% in 2008.
5-year yields ultimately declined from 5.15% to 1.36%.
via http://ift.tt/2hBwv98 Tyler Durden