Name: Leveraged funds' covering of the 2-year Treasury short in the week to 28 July 2026 reflects de-risking ahead of the 7 August payroll print, not a directional bet on Fed cuts, while the 10-year short's continued build and the futures-priced 42.3bp firmer 12-month path both argue the higher-yield thesis is still intact at the long end.
Rating: 1

Back to the register

What would prove it wrong: If the Non-Farm Employment Change prints at or below 57,000 on 7 August 2026, the 2-year Treasury yield would fall back through 4.0%, confirming the front-end covering anticipated a softer labor read; if it prints at or above 85,000 with the 2-year yield holding above 4.0%, the covering was premature and the firmer path stands unchallenged.
Stated probability the thesis holds: 52% · 1d horizon
Status: Held · 8 August 2026 · settled against the tape
How it settled: no DGS2 close below 4 through 2026-08-08

Read the note →

This is the desk’s own dated record, settled against market data. Descriptive of a research thesis, not investment advice.