The commitment of traders report shows treasury bears are record short 10-yr treasury futures. 

The treasury bears will cover, but at what price? That’s an unknown, but we can see when the bears increased their bets. And with that we can check gains for someone who held on.

10-Year Treasury Yields
 

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That’s one hell of a lot of bearish sentiment with virtually no price action.

Gundlach on Bonds

Massive increase this week in short positions against 10 &30 yr UST mkts. Highest for both in history, by far. Could cause quite a squeeze.

— Jeffrey Gundlach (@TruthGundlach) August 17, 2018

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Final Leg With Record Short Position

Massive increase this week in short positions against 10 &30 yr UST mkts. Highest for both in history, by far. Could cause quite a squeeze.

— Jeffrey Gundlach (@TruthGundlach) August 17, 2018