Treasuries-Yields rise as Iran tensions cloud inflation outlook
TLT•Positioning and Treasury supply
Market positioning, meanwhile, points to higher yields, with many futures traders caught in unprofitable long trades, according to Bank of America.
Commodity Trading Advisors, who have large and profitable bearish bets at the short end of the yield curve, also have scope to add more short positions further out the curve, BofA analysts Meghan Swiber and Eleanor Xiao said in a report.
The Treasury Department will sell $13 billion in 20-year bonds on Wednesday and $21 billion in 10-year Treasury Inflation-Protected Securities on Thursday.
Treasury yields and curve steepen
The 2-year note US2YT=RR yield, which typically moves in step with Fed interest rate expectations, rose 4.49 basis points to 4.217%.
