A $50 Billion Unwind Fueled Treasuries’ Rout. It Has Room to Run
- Massive pile of bond futures liquidated amid dismal auction
- Treasury rout seen sparked by technicals not fundamentals
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A chaotic selloff in the Treasuries market was spurred by a massive exodus from popular trades, heightened by liquidity concerns that could inflict more pain in coming days.
The exodus happened at a time when traders were already worried about the imminent disappearance of a support beam for the market -- a regulatory exemption that has allowed banks to accumulate more U.S. bonds.