Hedge Funds Eye Treasury Steepeners With Last Fed Move in Sight
- Positions in US two-, 10-year futures widest in over a year
- Short bets extend by most in three weeks: JPMorgan survey
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Hedge funds are warming up to bets on a steeper Treasuries yield curve as the end of the current Federal Reserve rate hiking cycle draws closer.
With markets pricing a smaller 25 basis point move at the upcoming Feb. 1 meeting, and the rate hike premium easing out of the March meeting as well, bond traders are betting next week’s interest rate increase could be one of the last for a while.