- Traders extended short positions against US government bonds, betting the selloff continues even after a sharp slowdown in job growth signaled a cooling economy.
- Some traders raced to cover bearish positions after the weak employment figures on Friday, producing only a short-lived bond rally.
- Long-term Treasury yields sit near a 24-year high, keeping pressure on duration-sensitive assets.
Quotes
“Traders extended their short bets against US government bonds as long-term yields hover near a 24-year high, signaling speculation the selloff is likely to continue even after a sharp slowdown in job growth pointed to cooling in the economy.”
“Some raced to cover bearish positions soon after the weak employment figures were released on Friday, contributing to a short-lived bond rally.”