Is Another Treasury Basis Blowup Coming?

If it's possible to write a scary-sounding or otherwise foreboding basis trade story, somebody will do it. Disaster postmortems sell. So do tales of ostensibly esoteric trades. Happily for an ambulance-chasing financial media that excels at telling you what happened after the fact, but generally fails to warn you ahead of time, a blown-up basis, a busted convergence or RV-gone-wrong check both boxes: They're ostensibly esoteric and they've been behind more than a few notable market events and d