The current drop in US Treasury bonds is really detached from the fundamentals.

Don't just talk about next year's inflation expectations or rate cuts—the 20-year Treasury yield has already hit 4.8%.

I think the main reason is that the US dollar is too strong. Many countries, especially the two major creditors, China and Japan, may have to sell US Treasuries to protect their exchange rates.

Moreover, the decline in US Treasuries has reached the stop-loss levels of some institutions/banks, forcing them to sell.

Wall Street short sellers will also take advantage of this trend to go short aggressively.

At this point, US Treasuries can only pause for breath when positive data comes out.

I won't sell at a loss at this level—I'll wait for a better opportunity to average down.

$iShares barclays 20+ Yr Treasury Bd(TLT.US)$Direxion 20+Yr Trsry Bull 3X(TMF.US)