Circuit-Breaker Triggered As Treasury Yields Spike Above CTA Liquidation "Red Line" Tyler Durden Fri, 06/05/2020 - 08:22 US Treasury yields are blowing out once again this morning with 10Y yields now above 85bps and well out of their 3-month trading range... Crucially, as we detailed previously, this break above 84bps means trend-followers are likely becoming forced sellers and creating a self-perpetuating surge in yields... According to Nomura's CTA position index (representing our estimate of the positioning of CTAs based on real-time data) CTAs to still have a net long position in 10yr UST futures, "although with a conspicuous notch recently where that position appears to have hit a ceiling." This means that should the pressure created by global macro hedge funds’ sell-off of USTs increase to the point that the 10yr UST yield climbs above the "red line" that exists at around 0.84%, CTAs would likely be drawn into exiting their long positions in TY to cut their losses. The stress is most obvious in the Ultras, which triggered circuit-breakers this morning... As the yield curve steepening accelerates... Is March's chaotic bond market about to make a reappearance?