Hedge Funds Risk Treasuries Wipeout After Bearish Bets Soar

  • Leveraged funds boosted short positions to record this month
  • JPMorgan says ‘real money’ should buy after backup in yields

Why There's a Showdown Looming in the Treasury Market

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There’s a big showdown looming in the U.S. Treasury market.

The “fast money,” made up of hedge funds and other speculators, upped its bearish bets like never before this month, based on futures data for five-year notes. At the same time, “real-money” accounts, composed of institutional buyers like mutual funds and insurers, did the opposite and built up Bloomberg Terminaltheir bullish positions in much the same way.