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Short Squeeze Begins? Treasury Yields Tumble To 1-Mo Lows

•, by Tyler Durden

That could be a major problem for the record amount of speculative shorts that have piled into the 'No brainer' bond bear positioning over the last few months...

As Jeff Gundlach warned over the weekendTreasury bets are so extreme that they're becoming a contrarian indicator in themselves.

As Bloomberg notes, the 10-year short surged last week to just shy of 700,000 contracts - 70% more than the previous record set in February 2017 and it exceeds the record long set in August 2007 by about 90,000. Shorts across 2-, 5-, 10- and 30-year Treasuries are even more unbalanced at a total of 1.61 million - that's 80% above the previous record short and more than twice as large as the peak long.

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