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Heads I win; Tails I break even
June 2022 Eurodollar
In the year long bond bear market, the Fed and their money center bank alllies are once again engineering one of their occasional reversals (ie higher bond prices, lower yield)- here is the 30 Year bond future chart of the action:
While it looks pretty puny, it used to work at panicking the shorts into buying and thus make interest rate suppression tactics cheaper. But it is becoming less effective as inflation heats up along with soaring (and forced) Treasury financing ($700B per month not including the relatively puny $80B in Fed buying). Meanwhile my position- shorting the June 2022 Eurodollar future- remains relatively invulnerable to the efforts to manipulate interest rates back down since it is already dirt cheap (an interest rate of .28%). One piece of evidence that the Fed and other manipulators are getting weaker is that the Fed this week is giving up propping near term Eurodollar interest rates at .15% and is allowing them to go up to close to .20% only .08% away from by June 2022 position.
Shorting June 2022 Eurodollar futures? Heads I win: Tails I break even. Such a deal.