Another Wrong Market Call For 2023?

Too early to tell whether last week’s action will live in market history as the Fitch top or a trap for the bond bulls. The selling from the stock markets key reversal on July 27^th resumed on August 2^nd in reaction to Tuesday’s unexpected downgrade of US debt by Fitch Ratings. There was also a key negative reversal Friday in the yield of the 30-Year T-Bond.

There has been much in the news about the large long bond position of some hedge fund and money managers who “had accumulated the biggest bullish position in more than a decade in June” according to JP Morgan Chase.