Draghi Could Cripple One of the Hottest Trades in U.S. Rates

From bnnbloomberg.ca

Mario Draghi’s last act at the helm of the European Central Bank could be the beginning of the end for a massive consensus trade on U.S. interest rates. Bets on Federal Reserve easing are at all-time highs, according to speculators’ latest positioning in short-term rates. But that vision for at least a half-point of U.S. cuts this year -- backed largely by a conviction that central banks globally will unleash more stimulus -- looks dicey after policy makers in Sweden, Canada and Australia pushed back last week. Doubts that the ECB will do all that’s expected of it on Thursday have helped push government yields ... (full story)