The trade is long IEF the iShares 7-10 Year Bond ETF (daily vol is only 0.21%) as I expect 10-year rates to fall slightly over the next 2-6 weeks with the reverse head and shoulder pattern in the weekly 10-year notes and traditional late summer/September rise in Treasuries from pension manager as people return to the office which should accelerate sooner than later this year as some additional buying will be timed before the pension tax benefits for bonds expire on September 15. Coincidentally this year there are also a record number of short speculative positions outstanding in the futures market which have made money YTD on rising rates and may take profits increasing the acceleration in the rise in 10-year Treasuries.
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