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Hedge Funds Catapulted Treasury Shorts to Record at the Wrong Time

hank
edited November 2023 in Other Investing
(Linked thru Yahoo. Originally by Bloomberg)

“Leveraged funds ramped up net short Treasury futures positions to the most in data going back to 2006, according to an aggregate of the latest Commodity Futures Trading Commission figures as of Oct. 31. The bets persisted even though the cash bonds had rallied the week before. ‘It feels like short US Treasuries positioning was at an extreme last week, which was an accident waiting to happen,” said Gareth Berry, strategist at Macquarie Group Ltd. in Singapore. “Price action in Treasuries for the past few months was a classic case of a persuasive story feeding the price action, until it went too far, leading to an overshoot which is now correcting.’”

https://finance.yahoo.com/news/hedge-funds-catapulted-treasury-shorts-023424329.html

Comments

  • AndyJ
    One of the participants in Friday's Bloomy Real Yield said short covering was a big part of the story in the price surge of Treasuries.
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