Bond Quickie
A low frequency but juicy strategy where the edge is government incompetence.
Let’s dig in…
Last we left you, we were talking about how the FED and bonds were fuct and EMs were likely the recipients of a flip in fund flows. Two weeks don’t make a trend but that sure seemed timely as TLT continues to roll on the back of made-up NFP numbers, while EMs (i.e. China) went bid on the back of Xi’s bazooka. While China saw fund flows, its TLT that we are really keying in on as they can’t even go green on an escalation in MENA. IF you can’t rally on “good” news (for the security that is..bad news for anyone using a pager) then batten down the hatches. Is there any wonder why Druck hit the conference circuit to disclose his 20% short in bonds this week?? He is the GOAT of price action and timing… Word has it he’s playing the steepener but we got a funny feeling he’s finally going for the jugular with a ratio on duration. The FED is FUCT…see ya at a 80 handle…
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