Well, we saw this coming last week.

Recall that exactly seven days ago, in  “One Bank Warns: ‘The Market Is Vulnerable To A Risk-Off Trade,’” we highlighted a note from Deutsche Bank’s Dominic Konstam and co. who delivered the following assessment on rates:

We believe that despite considerable local stability, the market is vulnerable to a risk off trade. We see an asymmetric risk between rally and sell off.  Specs remain significantly underweight duration and, in our view, a bull flattening rally below 2.25% 10y yields could cause substantial short covering activity, adding a tail wind to a rally below these levels.

That’s not entirely consistent with the message that particular team usually sends and it certainly suggested that with 10Y yields moving lower and fundamental tailwinds such as the Trump administration’s failure to rapidly advance their growth-friendly agenda and technical tailwinds such as (possible) renewed buying from Japanese investors (think a favorable FX environment and lower hedging costs) and the continuation of short-covering, adding fuel to the rally, Konstam was ready to throw in the proverbial towel.

Well fast forward one week and that’s exactly what happened. Although Deutsche doesn’t call it “throwing in the towel.” No, they call it “shifting the forecast forward.” How fun is that?

But who can blame them, right? Here’s an annotated chart and a 30,000 foot view:

Read below for a tutorial in how to transform two words (“f*ck it“) into 363 words.

Via Deutsche Bank