Hedge Funds Boosted Record Treasury Shorts as Markets Convulsed
- Asset managers take opposite stance, adding to record longs
- Leveraged funds ‘well positioned’ to bet on bond selloff: GSFM
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Hedge funds ramped up their bearish Treasuries bets to a record last week just as yields surged toward multi-month highs, while more traditional investors were burnt having boosted wagers in the opposite direction with similar conviction.
Leveraged fund increased net-short positions of longer-maturity Treasuries derivatives to the most since figures going back to 2010, according to an aggregate of Commodity Futures Trading Commission data for the week to Aug. 1. Asset managers took opposite bets, taking their own net-bullish positions to an all-time high.