ZeroHedge is not shy about running with a story once they see it is getting some traction.
In this case it happens to be a very important story.
From ZH, February 16:
11:39 am Stocks Slammed As Yield Surge Spoils TINA Party
11:04 am Treasury Yields Surge Above March Spike Highs As Gamma-Selling Kicks In
9:10 am 1.25% 10Y Yields: Now What?
And, just a reminder, our readers have known where to focus since August, despite my having the attention span of a gnat we've somehow managed to keep perspective, even poo-poohing ZH fretting at 1.02% on the 10-year on December 3:
"CTAs Will Puke Once 10Y Yield Hits 1.02%, Sparking Liquidation Cascade"
A quick note up front: trading off the information embedded in the Commodity Trading Advisors reports or the gamma gurus is only a guide to what is going on, it is not the ultimate reality. There are events that overcome option dealer positioning or commercials vs. specs and this is especially true in situations like the dollar or the 10-year where the crowd, ourselves included, have been on the right side of the trades.
By the bye, although we did not catch the exact recent bottom on the 10-year yield, 0.5040% on August 6th, (we really started beating the drum that rates were going higher at 0.56%) the 10-year's yield—proxied by the CBOE's TNX—has backed up to 0.9200 -0.0280 (-2.95%):
We saw .9660% on Wednesday afternoon.
The time to start fretting is now. Something changed as we approached 1.30% this morning.
1.2870% top-tick, 1.2840% last.
