Tricked again by the headlines

For those who shorted the U.S. 30 year bond yesterday (link) while the yield was trading around 5.12% – 5.17%…….was it a case of the inability to think for oneself ?

Now I see it is trading at 4.95%, only 20 hours later.

This quip isn’t really about picking highs or lows, but I’m fairly sure (days earlier) that many of ‘those’ short sellers believed in the ‘higher rates for longer’ thesis………until they traded the new headlines.

That’s a strange way to think about a 30 year maturity bond?

October 24, 2023

by Rob Zdravevski

rob@karriasset.com.au