Authored by Adam Taggart via PeakProsperity.com,
Sheelah Kolhatkar, former hedge fund analyst and staff writer at the New Yorker, thinks hedge funds have enjoyed enormous unfair advantages for far too long.
Bond bears covered over 340,000 10Y futures contracts in March - more than $34 billion notional Treasuries - making it the biggest short-squeeze in Treasury Futures history.
In fact, shorts covered across the entire yield curve complex... except for the every short-end...
Net Treasury futures shorts are now back to the lowest levels since early December 2016 but traders continue to pile into the short-end betting massively on further rate hikes as Eurodollar shorts push on beyond $3 trillion...
Authored by Bryce Coward via Gavekal Capital blog,
As 1Q17 finishes with a gain in the books, the stock to bond performance ratio has also broken to a new cycle high, elevating to levels not seen since mid-2007.
Our measure of the stock to bond ratio measures the total return of the S&P 500 relative to that of the JPM 10 year treasury total return index. When the blue line rises, stocks are outperforming bonds, and vice versa.
A topic that has been beaten to death both on these pages and virtually in every other financial website, has been the remarkable complacency in markets manifested, among other things, by near record low realized and implied equity vol, coupled with a recent plunge (if subsequent rebound) in cross-asset correaltions.
Before you begin to mention the grandiose gains in the stock market since Obama took office, bear in mind a few things.
1. The Federal Reserve lowered interest rates to zero percent, making bonds and interest bearing accounts untenable for retirees, effectively forcing people into stocks. Also, the Fed's balance sheet went from ~$750b to $4.5t over that time frame -- rigging both equity, currency, and bond markets over Obama's entire 8 year term.