The Never-Ending US Treasury Selloff

Bonds were in the headlines again on Thursday, when 30-year US yields pushed well above 5% and 10-year yields made a run at a five-handle. The extension of the selloff at the US long-end came on the heels of the prior session's gilts-driven weakness. That fizzled in the wake of a solid 20-year sale, and there was plenty on the docket Thursday for bonds to digest. But the fact that Treasurys continue to trade heavy speaks to the notion that the factors which prompted the market to reassess the t

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One thought on “The Never-Ending US Treasury Selloff”

Is there an easy way to track the short positioning in 10 yr Treasuries and longer (duration) ? How much of this unnerving volatility is due to speculative short positioning from quants/algos, hedge funds etc.? Is there a role for regulatory authorities to impose a moratorium on short-selling in market for US Treasuries of 10 yrs and longer duration ?? Short selling of US Treasuries doesn’t serve the same function of price discovery that is necessary for public equities. Its only function is for speculators with access to large amounts of capital I’m thinking. The average retail investor dabbling with TLT isn’t going to create such volatility in US Treasury market.