Is A Rebalancing Happening

Despite the mid afternoon weakness in stocks, treasuries have not blinked and are sitting at their lows of the day. I believe this might be a sign that we are beginning to see the quarter end rebalancing I spoke of last week.

It has been a historic quarter for outperformance of bonds over stocks and investors allocations are likely out of whack as a result. Quarter end is generally the time that institutional investors rebalance and Friday is the end of the quarter.

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