I don’t have a sense that people were speculating on rising rates in Europe. Rather, they were going long and got wiped out lately. My guess is the positions are pretty clean in Europe. But I do think that the reality of QE will cause bunds to resume their drift higher.
I have no position on short-term USTs; there is significant risk on both sides. My bullish call pertains only to the long end.
CIO, HonTe Investments. Ran global macro at JPM. Yahoo! Finance Contributor. Ph.D. in Mathematics. Author, The Next Perfect Trade. No investment advice.
