ZB ZB Zimmer Biomet Holdings, Inc. Loading... : Bullish and Bearish Analyst Opinions

The author questions the thinness of the ZB chart and asks about holding the 111 level, without taking a directional position.

Short duration via a 1x2 put spread on ZB (30-year Treasury futures), expressing an alpha-seeking bearish rates view beyond simple beta duration exposure.

Short ZB via a put spread targeting a rise in 30-year yields to 5.20-5.75, with break-even at 5.6 and a stop at 5.75, as the overheat is "mostly covered."

The author is outlining a specific short trade on 30-year Treasury bond futures (ZB), looking to enter at 119 and take profit at 115.

Fed officials are pivoting from labor market concerns back to sticky inflation (Core PCE 2.8%). Rochester notes the recent rally in the long end is "untenable." If the Fed cannot cut rates (or must hike) due to sticky inflation, the inflation premium must be repriced into the long end of the curve. Yields on the 10Y and 30Y must rise (prices fall) to reflect this reality. SHORT. The market is mispricing the duration risk; the "pivot" is delayed or cancelled. A banking crisis or liquidity event forcing the Fed to cut rates rapidly despite inflation.