Kass also pointed to improving economic data and an already crowded trade in bonds.
“With retail investors and large pension plans heavily skewed away from stocks and into bonds, a spike in interest rates could occur based on a possible (and maybe inevitable) large reallocation trade from bonds into stocks,” he wrote. “Despite little or no real yields on fixed income, sentiment figures on bonds remain at or near all-time-high and bullish levels.”
ProShares UltraShort Barclays 20+ Year Treasury
