J.P.Morgan Weigh In On Tuesday's Richening

In light of Tuesday's bull flattening J.P.Morgan note that while there was no fundamental news to "point to for this rally, it's notable once again that this move was global in nature, with long-end yields in Germany and the UK declining 8-11bp. It seems perverse that the U.S. is getting dragged along by developments in other DM government bond markets, but positions continue to lean short - our Treasury Client Survey shows investors remain positioned for higher yields, albeit not near as short as during the summer. We continue to think this is being amplified by liquidity dynamics, as market depth has declined to the lowest levels since late summer, and is unlikely to improve materially with year-end looming."