The latest Commitments of Traders report was released, covering positions through Tuesday
The 3-Year Min/Max Screen shows that "smart money" commercial hedgers established only one new extreme this week, short exposure in Ultra 10-Year Treasuries, which are more closely aligned with an actual 10-year maturity. They also sold the traditional 10-year T-note but their exposure there is about neutral. Hedgers have begun to reverse their net long position in the U.S. dollar, and because of how these traders operate, this tends to be dollar-positive. Reversing from the recent extreme is about the most bullish it could be, so if the buck is going to see a sustained rally, it should be from a setup like this.
