Bond Traders Load Up on Bearish Wagers as Rate-Cut Odds Dwindle
- JPMorgan survey shows biggest outright short bets since Jan. 1
- In futures, bearish positions fueled Monday’s Treasuries slide
This article is for subscribers only.
Bond traders are piling into bearish bets, fueling a selloff in benchmark Treasury securities, as fresh evidence of robust US growth triggers a recalibration of expectations for Federal Reserve interest-rate policy.
JPMorgan Chase & Co.’s latest client survey showed that outright short positions in US Treasuries rose to the most since the start of the year in the week leading up to April 1. That bearish sentiment spilled over into this week, helping to drive US 10-year yields to as high as 4.4% on Tuesday, a level not seen since November.