Bearish Bond Bets Ramped Up ‘Big League’ Ahead Of Tax Plan

Boy, I’ll tell you what: some folks were paring the holy shit out of 10Y longs in the week though Tuesday.

According to the latest CFTC data, specs reduced their net longs in TY by 151K contracts, during the week through October 31. That would be the largest cut this year by a country mile:

SpecsTY

Over all, specs added 262K contracts in TY equivalent to their net shorts during the week and as Deutsche Bank notes, this was the largest 1-week net selling in DV01 since late November 2016:

Specs

SpecPosAcross

Look at the FV short:

FVShort

The only place on the curve they weren’t bearish was at the front end.

Again, that’s through Tuesday as in, ahead of the tax plan unveil and ahead of confirmation that Trump had indeed chosen Jerome Powell for the Fed.

Make of that what you will.

 

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