J.P.Morgan: Recent Outright Yield Decline Driven By Technicals

J.P.Morgan note that "without a fundamental catalyst, we think the declines in yields over the last couple of sessions have been driven largely by technicals, especially given the breadth of short duration positioning: as of Monday, net positions in our Treasury Client Survey remained near their shortest level since September 2018. Though the decline in nominal yields was accompanied by an underperformance of TIPS and a narrowing in 5Yx5Y breakevens, intermediate yields fell by more than their fundamental drivers, and Treasuries are now at their richest levels versus our fair value model since mid-February."