Another week, another record high for net-short exposure to the US 2-year bond. And as yields have risen since the data was collected last Tuesday, I suspect we’ll be looking at another new record when the next report is released on Friday. So whilst positioning is clearly at an extreme and at risk of a nasty reversal at some point, we’re yet to see that materialise on prices. Clearly, higher yields have benefitted the US dollar which helped the US dollar index rise for a sixth week. Although such sequences are quite rare so we’d expect a bearish week at some point, which could help the likes of AUD/USD and gold hold ... (full story)