Smart money sells treasuries like this if expectation that yields are going much higher. Right now risk markets expect Fed to slow down then pivot this year.
Bonds tell a different story.
Sell ahead of rising yields, buy back when Fed is done.
Discussion
I expect Fed to raise to at least 5.5% before a pause, with no reverse course this year. Inflation will remain elevated
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I agree with you but why has being risk on since the beginning of the year been so profitable. I am looking to exit but it keeps going up :)
Fed playbook: Get to 5.5%, hold, and wait and see.
Market: just over here front running the feds ultimate capitulation
Markets can stay irrational longer than you can stay liquid. But also donāt fight the Fed. 2 axioms that seem to be in conflict currently.