Bets Against Treasuries Build in Defiance of Uncooperative Data
- Bank of America, JPMorgan surveys find rising bearishness
- Majority expects Fed to signal tapering by September meeting
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A robust short base has formed in the Treasury market, expecting an economic recovery, and it’s willing to overlook data points that contradict its preferred narrative.
“Investors seem to take the view that what matters is that the U.S. economy is recovering, rather than worry too much about the precise strength of the recovery at any particular moment in time,” Bank of America strategist Ralf Preusser said in a note. Positioning has become a “sea of uncertainty,” he said.