Hedge Funds Brace for Hike Cycle End, Turn Bullish SOFR Futures
- Leveraged fund net futures short cut for fourth week in a row
- SOFR options flow looks to pin Fed rate around current pricing
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Hedge funds are going long on short-term interest-rate futures tied to the Secured Overnight Financing Rate. The shift comes as investors prepare for the end of the Federal Reserve’s series of interest-rate increases and shrug off central bank hawks who say more tightening is needed.
Funds flipped long on SOFR futures contracts for the first time in over a month last week, Commodity Futures Trading Commission data show.