My Investment thesis on shorting bonds
- FED is shifting to more hawkish tone (a possible of 4 rate hikes instead of 3 this year) due to a possible picking up of .
- Unwinding of carry trade.
- EM bonds are much more attractive.
- Credit spread is at an all time low (High Yield spread and Investment Grade spread)
Technically speaking, bonds has been in a downtrend for a while; so, this is quite a late call, but I believe there is still a downside here that we can play.