UST Overview

ETF Inflows: The ProShares Ultra 7-10 Year Treasury ETF saw the largest increase in inflows, adding 230,000 units, which represents a 37.4% rise in outstanding units.

Market Commentary: The views expressed in the article are those of the author and do not necessarily reflect the opinions of Nasdaq, Inc.

Federal Reserve Rate Cuts: The Federal Reserve is expected to continue its easing cycle with a 25 basis point rate cut, following September's reduction, while the yield on the 10-year Treasury has risen to 4.47%, indicating concerns about long-term economic conditions and rising debt levels.

Bond Market Dynamics: Veteran strategist Ed Yardeni highlights that the bond market may be reacting negatively to the Fed's rate cuts, raising inflation expectations due to fears of fiscal excesses from the next administration, suggesting potential challenges for future monetary policy effectiveness.

ETF Outflow Details: The ProShares Ultra 7-10 Year Treasury ETF experienced the largest outflow, losing 370,000 units, which is a 36.1% decrease in outstanding units compared to the previous week.

Author's Perspective: The opinions expressed in the article are those of the author and do not necessarily represent Nasdaq, Inc.

Extradition Decision: Do Kwon, co-founder of Terraform Labs, will be extradited from Montenegro to South Korea after a court ruling rejected a U.S. extradition request, with the final decision pending from Montenegro's Minister of Justice.

Legal Background: Kwon faces ongoing litigation related to the collapse of TerraUSD and Terra cryptocurrencies, which resulted in over $40 billion in losses for investors, and he was previously apprehended for using a fake passport while attempting to flee.

Personal Experience with Shorting: The author expresses a strong dislike for shorting stocks, citing a poor risk-reward relationship and past losses from shorting highflying stocks in late 1999.

Current Market Sentiment: The author believes the current market is even crazier than it was in late 1999, making shorting particularly risky.

Recent Trading Action: On Friday morning, the author announced they had shorted the SPDR S&P 500 ETF (SPY) with a time frame of several months for this trade.

Self-Deprecating Humor: The author shares their trade as a form of entertainment, anticipating that they may be criticized for shorting during a significant market rally.

Crisis Context: The author highlights the contrast between the market's performance and the underlying economic and corporate crisis, suggesting a disconnect.