Rates Traders Cut Back on Wagers Blue Wave Will Trigger Selloff
- Long-bond futures positions see biggest drop in months
- ‘There’s not likely potential for a massive squeeze’: Shaoul
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A week before the U.S. election, bond traders betting on a Democratic sweep are starting to lose their nerve.
Treasury futures traders pared a record short position in longer maturities on Monday after fiscal-stimulus talks stalled and stocks sank amid renewed concerns over the pandemic and the economic outlook. The risk-off shift sparked the biggest one-day decline in long-bond futures positions since at least August. The drop came to around 13,500 contracts, according to CME Group Inc. data released Tuesday.