Don’t Look Now But There’s “Trouble With The Curve”

Yeah, so we're starting to have some "trouble with curve," so to speak. Specifically, the spec short in the 10Y has been almost completely covered over the past three weeks as yields have come under pressure from a dovish Fed and the failure of the GOP bid to repeal and replace Obamacare. Meanwhile, the record eurodollar short just keeps getting record-er-er which kinda makes it seem like maybe folks are betting on a policy mistak-ish flattening episode. Well earlier today, 10Y yields abru