IN THIS REPORT
● BANK FAILURE, AGAIN? – with duration risk infecting balance sheets
sector-wide, the next shoe to drop in the financial sector is a question of
who and when, not if. p. 1 – 3
● CREDIT EVENT – how the “flight to safety” trade could trigger an
unprecedented short squeeze in Treasuries with Hedge Funds caught short.
p. 4
● INFLATION – investors’ current expectations for future inflation, why
commodities and fiscal policy say they’ve got it wrong, and the long-term
implications for bonds. p. 5 – 17
● TECHNICALS – a closer look at the U.S. 10-Year Treasury Note and TLT
technicals supports an imminent reversal in Treasuries, but the primary
trend remains down. p. 18 – 20