AX - Treasury yields slump after jobs reports amid 'positioning shakedown'

Investors rush to buy U.S. Treasurys even after a stronger-than-expected October jobs report confirms the Federal Reserve's view that the economy is strong enough for it to start tapering its purchases of Treasurys and mortgage-backed securities. The 10-year Treasury yield drops 11 basis points to 1.47% after initially spiking to as high as 1.54%; remember that in the bond market as bond prices climb, yields fall. As a result, ProShares UltraShort 20+ Year Treasury ETF (TBT -2.6%) falls, iShares 20+ Year Treasury Bond ETF (TLT +1.2%) rises. So if the jobs report came in stronger than expected then why are investors rushing to the safety of U.S. Treasurys? Robin Brooks, chief economist at the Institute for International Finance, says the jobs number is basically in line with consensus, at 0.9 standard deviations, and shouldn't move markets. "So what's happening now is a hunt for the biggest position, which is a

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Treasury yields slump after jobs reports amid 'positioning shakedown'