“It just seems everywhere one looks, none of the news is good news and as such there is little else to buy other than Treasurys,’’ Anthony Cronin, a Treasury bond trader at Société Générale SA., said in the Bloomberg article.
Additionally, some strategists argue that short covering is also exacerbating the sell-off. As the Treasuries market continue to strengthen, short sellers have been forced to close out their bearish calls and buy into the market, fueling gains.
“We have seen speculators cover up their shorts in euro dollars, two-year futures, as well as five-year futures, over the last two weeks,” Natan Magid, strategist at BMO Capital Markets, said in a Reuters article “We had a short-covering rally.”
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Max Chen contributed to this article.