This creates a significant community of short traders who will probably cover their shorts in today's 1pm auction in 35 minutes. This argues for a strong auction...probably coming on the screws If i was going into this auction short, as all of my dealer friends are, i would be bidding thru to cover my short and come out flat. I have a hard time today predicting the post-auction price action at the moment, so i'm not involved yet.
With the FOMC statement coming out just after tomorrows 30yr bond auction...that will be a much more interesting and difficult auction to trade. More thoughts about that later today / tonight.
govttrader out.
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