Here are the survey results from the post on Friday's market action in treasuries (see post).
Below are some of the "other" reasons the survey participants pointed out:
- many tactical shorts that have been squeezed, may be some shorts throwing the towel
- QE taper end always sees bonds rally
- Equity market risk
- Price action: Trend followers who missed the move so far saw a good entry point to get long
- players realize dire circumstances EM are in and that Fed has no choice but to quash rates through 2020 and maybe beyond - see Levy reference in Barron's by Forsyth this week
- deflation; payrolls are a lagging indicator
- US 10-y yield attractive at 1.8 times Bund 10-y, or versus JGB 10-y
- Slowing global growth
- no inflationary pressure, real yields at the long end are very compelling
- Unwind of risk on trade because of tapering.
- growing awareness that the "neutral" policy rate is low
Apologies if your "other" response wan't included - there were just too many to list.
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