Short Covering
Rotation back into risk averse assets has yields backing down.
The Dreaded 2s-10s Spread Trade also winding back.
As you can see this spread was very low when the markets were plummeting, as investors were totally spooked out of risk assets into safety assets like treasuries, as the market rallied on global quantitative easing for the next 4 months, this spread got increasingly wide as the safety trade had to unwound. What we are seeing currently is a sell off in commodity/equity classes back into treasuries.
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