Hedge Funds Face Into Bank Turmoil With Epic Short Treasury Bets
- Leveraged fund bets at odds with Wall Street US bond bulls
- Fed rate cut pricing ‘likely overdone’: Goldman strategists
This article is for subscribers only.
Hedge funds supercharged bearish Treasury bets to historic levels just days before the US banking turmoil took a turn for the worse and spurred a stampede for the world’s safest assets.
Leveraged funds boosted overall shorts on US bond futures to a fresh record in the week to May 2, according to a gauge of aggregate net positions based on the latest data from the Commodity Futures Trading Commission. That’s a seventh straight week of ramped up bearish bets — the longest streak since 2017.