WAM Strategy Note: STFR in Bonds
Increasing the short UST 20s position WOTE US Core FICC.
Discussion
Over the course of May in two tranches I averaged into a -100% position in UST 20s via the TBF ETF. Today I took that position to -150% and if there is more rallying on a soft NFP report Friday I will take it to the max of -200%.
Reckless global central bank policymakers are in the process of cementing a second inflation wave, Arthur Burns style, by initiating a cutting cycle at the first sign of labor market softness with inflation still above target, commodities well bid, and the US economy running maximal fiscal stimulus policies at 5-10% of GDP.
Stocks are going to do what stocks are going to do. But bonds have no fundamental business trading south of 500 minimum.
Short & hold.