Why JonesTrading's O'Rourke Thinks Shorting Bonds Is the Trade of the Year

The video discusses the impact of a large supply of US Treasury auctions on the market, focusing on the 10-year yield's significant rise since 2013. It explores the yield curve, particularly the 2:10 spread, and the potential for a steepening curve in 2018. The discussion includes the implications of government debt issuance and projections for the two-year yield reaching 3% with expected rate hikes. The video also covers trading strategies related to treasury futures, emphasizing a short position due to anticipated rising yields.

What was the significant move in the 10-year yield mentioned in the text?

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Discuss the significance of the 2:10 spread in the context of the text.

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How does the flattening of the yield curve relate to the current market situation?

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What implications does the expected rate hike by the Federal Reserve have on other asset classes?

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What are the expected trends for Treasury futures based on the current market analysis?

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