Good Friday AM,
No data today, thankfully as its much nicer to go into these holiday with less to think about. We did have 3 hawkish central bank announcements on Wed/Thu and one dovish today (from the bank of Japan). They have been no match for the bullish impulses at the end of the week. These include, but are not limited to, omicron concerns, positional considerations (asset allocation between stocks/bonds as well as a big contingent of “shorts” susceptible to being squeezed), and all of the above moving on greased skids due to “last week before x-mas holiday week” liquidity conditions. Focusing on the last part, shorts, are great to see. As the selling continues (rates improve little by little), traders who have sold short need to buy back the bonds and that just increases the price and lowers the rate. I like seeing shorts in the market. The thing to know about shorts is they are in a limited amount and once they are gone markets tend to bounce the other direction so I would expect rates to pop up once those shorts are taken out. For now though, I like riding this wave.
Short and sweet,
Please remain safe and healthy, have a fantastic weekend, Happy Holidays and make today great!