Hedge Funds Place Biggest Ever Short on Benchmark Treasuries
- Leveraged funds may expect sticky inflation, Westpac says
- US yields rose in April after recording monthly drop in March
Hedge funds are betting on higher Treasury yields in a market that’s divided over whether the US economy can avoid recession and Federal Reserve interest-rate cuts.
Recent positioning data suggests leveraged investors are about as confident as the central bank is that a slump be dodged even as the past year’s inflation-fighting policy tightening bites on activity.