What’s Really Going On With That ‘Massive’ Treasury Short?

There's been no shortage of chatter recently about the near-record spec short in Treasurys and, more to the point, whether it presages a short squeeze. After paring bearish bets a week after the 10Y short pushed to a new record, the position was rebuilt in the week through last Tuesday and now sits at 680K contracts. (Bloomberg) Again, the prevailing narrative is that spec positioning is a contrarian indicator and that when things get as purportedly stretched as they are now on the short si