There Are Likely Massive Treasury Carry Trades Underwater Right Now

[Pallas_Boreas]

The "Front End" of the Treasury Yield Curve has repriced violently over the last three months, especially within the last two weeks. There have been a few catalysts such as regular hawkish talk from the FED, an Iran War where energy infrastructure attacks are common, and even a global "de-dollarization' narrative makes the headlines. But, some deeper catalysts are an increase in cost of capital (both hedging and borrowing) and a growing sense that nobody really knows, for lack of a better term, what the fuck they are doing (apologies to "The House" Bessent).

Link: https://robertsresearch.substack.com/p/there-are-likely-massive-treasury

[Pallas_Boreas]

Here is the data.