The Bond Market Has Never Been More Bearish on 2-Year Treasuries
- Speculators’ bearish bets rise before Fed decision Wednesday
- But eurodollar market reflects doubt about rate hikes
Stifel's Piegza Sees Fed Focused on Soft Inflation Data
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Looking at how hedge funds and other large speculators are positioned in short-term Treasuries, one might conclude that another Federal Reserve rate hike was imminent.
The group increased its net short position in two-year Treasury note futures to an unprecedented 274,213 contracts last week, according to Commodity Futures Trading Commission data. The maturity is among the most sensitive to Fed expectations, and the speculators stand to profit if the central bank is more hawkish.