Well, the virtual bond pits.

Looks like specs are getting spooked and covering their bond shorts.

Stunning, however,  that the 10-year note yield is right about where it was on September 21st when the S&P500 made its intraday all-time high at 2940.91.   The move to 3.25 percent is what kicked off this latest correction, in our opinion.

Nevertheless,  yields are very sticky to the downside.  We hear market pundits declare yields have peaked.  We retort only if stocks are headed for bear, the economy sliding into recession, and haven flows can absorb the massive increase in supply and selling by the Fed and other central banks.

Any other scenario yields are headed way higher.

We think the markets are going to be surprised on how long-term yields do not behave as expected.  See here.

Laughable to see some taking victory laps on Twitter about sticking with their bond long positions.

It’s almost guaranteed they are still underwater on their positions but, of course, they will argue they bottom ticked the market and got long on October 5th.  Complete nonsense.  Run from these people

P.S…  500 point Dow flop today and 10-year unched.   Rest our case.