Bond Market’s Pre-Fed Wipeout Led by Asset Manager Selling Spree
- Group’s net long in 10-year futures falls to 2017 low
- Maturity’s yield jumped most since June on revived Fed wagers
How Yields May Defy Wall Street Logic Once Unwind Begins
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Money managers in the Treasury market practically sprinted for the exits last week, spooked by yields at year-to-date lows with the Federal Reserve’s decision on its $4.5 trillion balance sheet looming.
That’s the takeaway from the latest Commodity Futures Trading Commission data. Asset managers slashed their long position in 10-year futures by 114,832 contracts in the week through Sept. 12, the biggest reduction since January. That left them net long by about 45,000 contracts, the least bullish stance on the maturity this year.