McElligott On The Fed, Bonds And Fall ‘Timing Turn’

Market participants may soon brave another "bearish shot" at bonds, which could translate to rekindled interest in some manifestations of the reflation trade in equities. That was one takeaway from a Thursday note by Nomura's Charlie McElligott, who wrote that following the positioning washout which flattened the curve and pushed US yields to the lowest since February, VaR is "currently dialed way back." The associated bleed in value versus growth (figure below) may now look overdone to some e