Even Bond Traders Aren't Buying the Rally In Treasuries

Now we know. The rally in government bonds that pushed yields on benchmark 10-year notes down from more than 3.20 percent in November to less than 2.55 percent last week wasn't a sign that the U.S. economy was about to roll over into recession. Instead, like the jaw-dropping plunge in stocks, chalk the move up to exaggerated year-end positioning changes and other quirky market structure forces such as short covering. Just ask bond traders.